EMPLOYEE BENEFIT TRUSTS AND IFRS 10, CONSOLIDATED FINANCIAL STATEMENTS

摘要

ABC pic operates a share option plan as part of its remuneration package for its employees; it is not a long term employee benefit plan. The share option plan is operated through an employee benefit trust (EBT). The trustees of the EBT are also employees of ABC pic. ABC pic funds the operations of the EBT and also guarantees its obligations. ABC pic currently consolidates the EBT under the requirements of SIC 12 Consolidation - special purpose entities. Management at ABC pic is considering IFRS 10, Consolidated Financial Statements. Should this EBT be consolidated under IFRS 10, and what additional factors do management need to consider in their assessment of control over the EBT? IFRS 10, Consolidated Financial Statements does not apply to long term employee benefit plans. The share option plan that is operated by the EBT on behalf of ABC pic is a short term plan and is therefore in the scope of IFRS 10.