IFRS Standard: IFRS 12 Disclosure of Interests in Other Entities

IFRS 12 Objective and Scope


1 The objective of this IFRS is to require an entity to disclose information that enables users of its financial statements to evaluate: the nature of, and risks associated with, its interests in other entities; and the effects of those interests on its financial position, financial performance and cash flows.

Meeting the objective

2 To meet the objective …

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IFRS 12 Judgements and assumptions

Significant judgements and assumptions

7 An entity shall disclose information about significant judgements and assumptions it has made (and changes to those judgements and assumptions) in determining: that it has control of another entity, ie an investee as described in paragraphs 5 and 6 of IFRS 10 Consolidated Financial Statements;

  1. that it has joint control of an arrangement or
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IFRS 12 Interests in subsidiaries

Interests in subsidiaries

10 An entity shall disclose information that enables users of its consolidated financial statements

  1. to understand:
    1. the composition of the group; and
    2. the interest that non-controlling interests have in the group’s activities and cash flows (paragraph 12); and
  2. to evaluate:
    1. the nature and extent of significant restrictions on its ability to access or use assets, and
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IFRS 12 Disclosure Unconsolidated subsidiaries

Interests in unconsolidated subsidiaries (investment entities)

19A An investment entity that, in accordance with IFRS 10, is required to apply the exception to consolidation and instead account for its investment in a subsidiary at fair value through profit or loss shall disclose that fact.

19B For each unconsolidated subsidiary, an investment entity shall disclose:

  1. the subsidiary’s name;
  2. the principal place
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IFRS 12 Disclosures Joint arrangements and Associates

Interests in joint arrangements and associates

20 An entity shall disclose information that enables users of its financial statements to evaluate:

  1. the nature, extent and financial effects of its interests in joint arrangements and associates, including the nature and effects of its contractual relationship with the other investors with joint control of, or significant influence over, joint arrangements and associates
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IFRS 12 Disclosure unconsolidated structured entities

Interests in unconsolidated structured entities

24 An entity shall disclose information that enables users of its financial statements: to understand the nature and extent of its interests in unconsolidated structured entities (paragraphs 26–28); and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities (paragraphs 29–31).

25 The information required by paragraph …

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IFRS 12 Aggregation of interest in similar entities

Appendix B Application guidance

This appendix is an integral part of the IFRS. It describes the application of paragraphs 1–31 and has the same authority as the other parts of the IFRS.

B1 The examples in this appendix portray hypothetical situations. Although some aspects of the examples may be present in actual fact patterns, all relevant facts and circumstances of …

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IFRS 12 Interest in Other entities

B7 An interest in another entity refers to contractual and non-contractual involvement that exposes the reporting entity to variability of returns from the performance of the other entity. Consideration of the purpose and design of the other entity may help the reporting entity when assessing whether it has an interest in that entity and, therefore, whether it is required to …

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IFRS 12 Disclosure Subsidiaries, joint ventures and associates

Summarised financial information for subsidiaries, joint ventures and associates (paragraphs 12 and 21)

B10 For each subsidiary that has non-controlling interests that are material to the reporting entity, an entity shall disclose:

  1. dividends paid to non-controlling interests.
  2. summarised financial information about the assets, liabilities, profit or loss and cash flows of the subsidiary that enables users to understand the
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IFRS 12 Commitments to joint ventures

Commitments for joint ventures (paragraph 23(a))

B18 An entity shall disclose total commitments it has made but not recognised at the reporting date (including its share of commitments made jointly with other investors with joint control of a joint venture) relating to its interests in joint ventures. Commitments are those that may give rise to a future outflow of …

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