The Committee of European Banking Supervisors (CEBS) has published a letter it sent to the International Accounting Standards Board (IASB) on exposure draft 10 consolidated financial statements. CEBS is concerned that fewer structured entities could be consolidated under the proposed approach than under current guidance because of an ambiguity in the control model which could lead to structured entities not being consolidated even though there is exposure to economic risks and rewards. CEBS recommends that the IASB gives prominence to the role of risks and rewards in identifying control, particularly with respect to structured entities.

View Exposure draft 10 consolidated financial statements, 20 March 2009