Eligible subsidiary
A subsidiary is eligible if it:
- does not have public accountability; and
- has a parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.
Public accountability
An entity has public accountability if:
- its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or
- it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses (for example, banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks often meet this second criterion).
