Contents
INTERNATIONAL FINANCIAL REPORTING STANDARD 12
DISCLOSURE OF INTERESTS IN OTHER ENTITIES
OBJECTIVE
1
Meeting the objective
2
SCOPE
5
SIGNIFICANT JUDGEMENTS AND ASSUMPTIONS
7
Investment entity status
9A
INTERESTS IN SUBSIDIARIES
10
The interest that non-controlling interests have in the group’s activities and cash flows
12
The nature and extent of significant restrictions
13
Nature of the risks associated with an entity’s interests in consolidated structured entities
14
Consequences of changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control
18
Consequences of losing control of a subsidiary during the reporting period
19
INTERESTS IN UNCONSOLIDATED SUBSIDIARIES (INVESTMENT ENTITIES)
19A
INTERESTS IN JOINT ARRANGEMENTS AND ASSOCIATES
20
Nature, extent and financial effects of an entity’s interests in joint arrangements and associates
21
Risks associated with an entity’s interests in joint ventures and associates
23
INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES
24
Nature of interests
26
Nature of risks
29
APPENDICES
A Defined terms
B Application guidance
C Effective date and transition
D Amendments to other IFRSs
APPROVAL BY THE BOARD OF IFRS 12 ISSUED IN MAY 2011
APPROVAL BY THE BOARD OF AMENDMENTS TO IFRS 12:
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
(Amendments to IFRS 10, IFRS 11 and IFRS 12) issued in June 2012
Investment Entities
(Amendments to IFRS 10, IFRS 12 and IAS 27) issued in October 2012
Investment Entities: Applying the Consolidation Exception
(Amendments to IFRS 10, IFRS 12 and IAS 28) issued in December 2014
FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION
BASIS FOR CONCLUSIONS
International Financial Reporting Standard 12
Disclosure of Interests in Other Entities
(IFRS 12) is set out in
paragraphs 1–31
and
Appendices A–D
. All the paragraphs have equal authority. Paragraphs in
bold type
state the main principles. Terms defined in
Appendix A
are in
italics
the first time they appear in the IFRS. Definitions of other terms are given in the
Glossary
. IFRS 12 should be read in the context of its objective and the
Basis for Conclusions
, the
Preface to IFRS Accounting Standards
and the
Conceptual Framework for Financial Reporting
.
Basis of Preparation of Financial Statements
provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
[
Refer:
IAS 8 paragraphs 10–12
]
International Financial Reporting Standard 12
Disclosure of Interests in Other Entities
Objective
1
The objective of this IFRS is to require an entity to disclose information that enables users
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10 and 2.36
]
of its financial statements to evaluate:
(a)
the nature of, and risks associated with, its
interests in other entities
; and
(b)
the effects of those interests on its financial position, financial performance and cash flows.
[
Refer:
Basis for Conclusions paragraphs BC1–BC8
]
Meeting the objective
2
To meet the objective in
paragraph 1
, an entity shall disclose:
(a)
the significant judgements and assumptions it has made in determining:
(i)
the nature of its
interest in another entity
or arrangement;
(ii)
the type of
joint arrangement
in which it has an interest (
paragraphs 7–9
);
(iii)
that it meets the definition of an investment entity, if applicable (
paragraph 9A
); and
(b)
information about its interests in:
(i)
subsidiaries
(
paragraphs 10–19
);
(ii)
joint arrangements
and
associates
(
paragraphs 20–23
); and
(iii)
structured entities
that are not
controlled
by the entity (unconsolidated structured entities) (
paragraphs 24–31
).
3
If the disclosures required by this IFRS, together with disclosures required by other IFRSs, do not meet the objective in
paragraph 1
, an entity shall disclose whatever additional information is necessary to meet that objective.
4
An entity shall consider the level of detail necessary to satisfy the disclosure objective and how much emphasis to place on each of the requirements in this IFRS. It shall aggregate or disaggregate disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have different characteristics (see
paragraphs B2–B6
).
[
Refer:
Basis for Conclusions paragraphs BC8D and BC8E
]
Scope
5
This IFRS shall be applied by an entity that has an interest in any of the following:
(a)
subsidiaries
(b)
joint arrangements
(ie
joint operations
or
joint ventures
)
(c)
associates
(d)
unconsolidated
structured entities
.
5A
Except as described in
paragraph B17
, the requirements in this IFRS apply to an entity’s interests listed in paragraph 5 that are classified (or included in a disposal group that is classified) as held for sale or discontinued operations in accordance with
Non-current Assets Held for Sale and Discontinued Operations
.
[
Refer:
Basis for Conclusions paragraphs BC8A–BC8E
]
6
This IFRS does not apply to:
(a)
post‑employment benefit plans or other long‑term employee benefit plans to which
Employee Benefits
applies.
(b)
an entity’s
separate financial statements
to which
Separate Financial Statements
applies. However:
(i)
if an entity has interests in unconsolidated
structured entities
and prepares separate financial statements as its only financial statements, it shall apply the requirements in paragraphs 24–31 when preparing those separate financial statements.
(ii)
an investment entity that prepares financial statements in which all of its subsidiaries are measured at fair value through profit or loss in accordance with paragraph 31 of IFRS 10 shall present the disclosures relating to investment entities required by this IFRS.
[
Refer:
Basis for Conclusions paragraph BC61I
]
(c)
an interest held by an entity that participates in, but does not have
joint control
of, a
joint arrangement
unless that interest results in
significant influence
over the arrangement or is an interest in a
structured entity
.
(d)
an
interest in another entity
that is accounted for in accordance with
Financial Instruments
. However, an entity shall apply this IFRS:
(i)
when that interest is an interest in an
associate
or a
joint venture
that, in accordance with
Investments in Associates and Joint Ventures
, is measured at fair value
[
Refer:
]
through profit or loss; or
(ii)
when that interest is an interest in an unconsolidated structured entity.
Significant judgements and assumptions
[
Refer:
Basis for Conclusions paragraphs BC14–BC19
]
7
An entity shall disclose information about significant judgements and assumptions it has made (and changes to those judgements and assumptions) in determining:
(a)
that it has
control
of another entity, ie an investee as described in
paragraphs 5 and 6 of
Consolidated Financial Statements
;
(b)
that it has
joint control
of an arrangement or
significant influence
over another entity; and
(c)
the type of
joint arrangement
(ie
joint operation
or
joint venture
) when the arrangement has been structured through a
separate vehicle
.
8
The significant judgements and assumptions disclosed in accordance with
paragraph 7
include those made by the entity when changes in facts and circumstances are such that the conclusion about whether it has
control
,
joint control
or
significant influence
changes during the reporting period.
9
To comply with
paragraph 7
, an entity shall disclose, for example, significant judgements and assumptions made in determining that:
(a)
it does not
control
another entity even though it holds more than half of the voting rights of the other entity.
(b)
it controls another entity even though it holds less than half of the voting rights of the other entity.
(c)
it is an agent or a principal (see paragraphs B58–B72 of IFRS 10).
(d)
it does not have significant influence even though it holds 20 per cent or more of the voting rights of another entity.
(e)
it has significant influence even though it holds less than 20 per cent of the voting rights of another entity.
Investment entity status
9A
When a parent determines that it is an investment entity in accordance with
paragraph 27 of IFRS 10
, the investment entity shall disclose information about significant judgements and assumptions it has made in determining that it is an investment entity. If the investment entity does not have one or more of the typical characteristics of an investment entity (see
paragraph 28 of IFRS 10
), it shall disclose its reasons for concluding that it is nevertheless an investment entity.
[
Refer:
Basis for Conclusions paragraph BC61E
]
9B
When an entity becomes, or ceases to be, an investment entity, it shall disclose the change of investment entity status and the reasons for the change. In addition, an entity that becomes an investment entity shall disclose the effect of the change of status on the financial statements for the period presented, including:
(a)
the total fair value, as of the date of change of status, of the subsidiaries that cease to be consolidated;
(b)
the total gain or loss, if any, calculated in accordance with
paragraph B101 of IFRS 10
; and
(c)
the line item(s) in profit or loss in which the gain or loss is recognised (if not presented separately).
Interests in subsidiaries
10
An entity shall disclose information that enables users
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10 and 2.36
]
of its
consolidated financial statements
(a)
to understand:
(i)
the composition of the
group
; and
(ii)
the interest that
non‑controlling interests
have in the group’s activities and cash flows (
paragraph 12
); and
[
Refer:
Basis for Conclusions paragraphs BC21–BC29
]
(b)
to evaluate:
(i)
the nature and extent of significant restrictions on its ability to access or use assets, and settle liabilities, of the group (
paragraph 13
);
[
Refer:
Basis for Conclusions paragraphs BC30–BC33
]
(ii)
the nature of, and changes in, the risks associated with its interests in consolidated
structured entities
(
paragraphs 14–17
);
[
Refer:
Basis for Conclusions paragraphs BC34–BC36
]
(iii)
the consequences of changes in its ownership interest in a
subsidiary
that do not result in a loss of
control
(
paragraph 18
); and
[
Refer:
Basis for Conclusions paragraphs BC37–BC40
]
(iv)
the consequences of losing control of a subsidiary during the reporting period (
paragraph 19
).
[
Refer:
Basis for Conclusions paragraph BC41
]
11
When the financial statements of a
subsidiary
used in the preparation of
consolidated financial statements
are as of a date or for a period that is different from that of the consolidated financial statements (see
paragraphs B92 and B93 of IFRS 10
), an entity shall disclose:
(a)
the date of the end of the reporting period of the financial statements of that subsidiary; and
(b)
the reason for using a different date or period.
The interest that non-controlling interests have in the group’s activities and cash flows
12
An entity shall disclose for each of its
subsidiaries
that have
non‑controlling interests
that are material to the reporting entity:
E1
(a)
the name of the subsidiary.
(b)
the principal place of business (and country of incorporation if different from the principal place of business) of the subsidiary.
(c)
the proportion of ownership interests held by non‑controlling interests.
(d)
the proportion of voting rights held by non‑controlling interests, if different from the proportion of ownership interests held.
(e)
the profit or loss allocated to non‑controlling interests of the subsidiary during the reporting period.
(f)
accumulated non‑controlling interests of the subsidiary at the end of the reporting period.
(g)
summarised financial information about the subsidiary (see
paragraph B10
).
[
Refer:
paragraphs B11
and
B17
]
[
Refer:
Basis for Conclusions paragraphs BC21–B29
]
E1
[IFRIC®
Update
, January 2015, Agenda Decision, ‘IFRS 12
Disclosure of Interests in Other Entities
—disclosures for a subsidiary with a material non-controlling interest’
The Interpretations Committee received a request for clarification in respect of the requirements in paragraphs 12(e)–(g) of IFRS 12
Disclosure of Interests in Other Entities
to disclose information about a subsidiary that has non-controlling interests that are material to the reporting entity.
The submitter asked whether the information required by paragraphs 12(e)–(g) should be provided:
(a)
at the subsidiary level (ie the ‘legal’ entity) and be based on the separate financial statements of the individual subsidiary; or
(b)
at a subgroup level for the subgroup of the subsidiary together with its investees and be based either on (i) the amounts of the subgroup included in the consolidated financial statements of the reporting entity; or (ii) the amounts included in consolidated financial statements of the subgroup; noting that transactions and balances between the subgroup and other entities outside the subgroup would not be eliminated.
The Interpretations Committee noted that, within the context of the disclosure objective in paragraph 10 of IFRS 12, materiality should be assessed by the reporting entity on the basis of the consolidated financial statements of the reporting entity. In this assessment, a reporting entity would consider both quantitative considerations (ie the size of the subsidiary) and qualitative considerations (ie the nature of the subsidiary).
The Interpretations Committee noted that the decision on which approach is used to present the disclosures required by paragraphs 12(e)–(g) should reflect the one that best meets the disclosure objective of paragraph 10 of IFRS 12 in the circumstances. According to this objective, ‘An entity shall disclose information that enables users of its consolidated financial statements to understand (i) the composition of the group; and (ii) the interest that non-controlling interests have in the group’s activities and cash flows’.
The Interpretations Committee observed that this judgement would be made separately for each subsidiary or subgroup that has a material non-controlling interest.
Disclosures required by paragraphs 12(e) and (f) of IFRS 12
The Interpretations Committee observed that a reporting entity would meet the requirements in paragraphs 12(e) and (f) by disclosing disaggregated information from the amounts included in the consolidated financial statements of the reporting entity in respect of subsidiaries that have non-controlling interests that are material to the reporting entity. The Interpretations Committee further observed that a reporting entity should apply judgement in determining the level of disaggregation of this information; that is, whether:
(a)
the entity presents this information about the subgroup of the subsidiary that has a material non-controlling interest (present the required information on the basis of the subsidiary together with its investees); or
(b)
it is necessary in achieving the disclosure objective in paragraph 10 of IFRS 12 to disaggregate the information further to present information about individual subsidiaries that have material non-controlling interests within that subgroup.
Disclosures required by paragraph 12(g) of IFRS 12
The Interpretations Committee observed that:
(a)
paragraph 12(g) requires summarised information about the subsidiaries that have non-controlling interests that are material to the reporting entity;
(b)
paragraph B10(b) states that an entity shall disclose ‘summarised financial information about the assets, liabilities, profit or loss and cash flows of the subsidiary that enables users to understand the interest that non-controlling interests have in the group’s activities and cash flows. That information might include but is not limited to, for example, current assets, non-current assets, current liabilities, non-current liabilities, revenue, profit or loss and total comprehensive income’; and
(c)
paragraph B11 states that the ‘summarised financial information required by paragraph B10(b) shall be the amounts before inter-company eliminations’.
The Interpretations Committee observed that in order to meet the disclosure objective in paragraph B10(b), that information would need to be prepared on a basis that was consistent with the information included in the consolidated financial statements of the reporting entity. The Interpretations Committee understood this to mean that the information would be prepared from the perspective of the reporting entity. For example, if the subsidiary was acquired in a business combination, the amounts disclosed should reflect the effects of the acquisition accounting.
The Interpretations Committee further observed that in providing the information required by paragraph 12(g) the entity would apply judgement in determining whether:
(a)
the entity presents this information about the subgroup of the subsidiary that has a material non-controlling interest (ie, it presents the required information on the basis of the subsidiary together with its investees); or
(b)
it is necessary in achieving the disclosure objective in paragraph 10 of IFRS 12 to disaggregate the information further to present information about individual subsidiaries that have material non-controlling interests within that subgroup.
However, the Interpretations Committee noted that the information provided in respect of paragraph 12(g) would include transactions between the subgroup/subsidiary and other members of the reporting entity’s group without elimination in order to meet the requirements in paragraph B11 of IFRS 12. The transactions within the subgroup would be eliminated.
On the basis of this analysis, the Interpretations Committee determined that, in the light of the existing IFRS requirements, sufficient guidance exists and that neither an Interpretation nor an amendment to a Standard was necessary. Consequently, the Interpretations Committee decided not to add this issue to its agenda.]
The nature and extent of significant restrictions
13
An entity shall disclose:
(a)
significant restrictions (eg statutory, contractual and regulatory restrictions) on its ability to access or use the assets and settle the liabilities of the
group
, such as:
(i)
those that restrict the ability of a parent or its subsidiaries to transfer cash or other assets to (or from) other entities within the group.
(ii)
guarantees or other requirements that may restrict dividends and other capital distributions being paid, or loans and advances being made or repaid, to (or from) other entities within the group.
(b)
the nature and extent to which protective rights of non‑controlling interests can significantly restrict the entity’s ability to access or use the assets and settle the liabilities of the group (such as when a
parent
is obliged to settle liabilities of a
subsidiary
before settling its own liabilities, or approval of
non‑controlling interests
is required either to access the assets or to settle the liabilities of a subsidiary).
(c)
the carrying amounts in the
consolidated financial statements
of the assets and liabilities to which those restrictions apply.
[
Refer:
Basis for Conclusions paragraphs BC30–BC33
]
Nature of the risks associated with an entity’s interests in consolidated structured entities
[
Refer:
Basis for Conclusions paragraphs BC34–BC36
]
14
An entity shall disclose the terms of any contractual arrangements that could require the
parent
or its
subsidiaries
to provide financial support to a consolidated
structured entity
, including events or circumstances that could expose the reporting entity to a loss (eg liquidity arrangements or credit rating triggers associated with obligations to purchase assets of the structured entity or provide financial support).
15
If during the reporting period a
parent
or any of its
subsidiaries
has, without having a contractual obligation to do so, provided financial or other support to a consolidated
structured entity
(eg purchasing assets of or instruments issued by the structured entity), the entity shall disclose:
(a)
the type and amount of support provided, including situations in which the parent or its subsidiaries assisted the structured entity in obtaining financial support; and
(b)
the reasons for providing the support.
16
If during the reporting period a
parent
or any of its
subsidiaries
has, without having a contractual obligation to do so, provided financial or other support to a previously unconsolidated
structured entity
and that provision of support resulted in the entity controlling the structured entity, the entity shall disclose an explanation of the relevant factors in reaching that decision.
[
Refer:
Basis for Conclusions paragraphs BC102–BC106
]
17
An entity shall disclose any current intentions to provide financial or other support to a consolidated
structured entity
, including intentions to assist the structured entity in obtaining financial support.
[
Refer:
Basis for Conclusions paragraph BC106
]
Consequences of changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control
18
An entity shall present a schedule that shows the effects on the equity attributable to owners of the
parent
of any changes in its ownership interest in a
subsidiary
that do not result in a loss of
control
.
[
Refer:
Basis for Conclusions paragraphs BC37–BC40
]
Consequences of losing control of a subsidiary during the reporting period
19
An entity shall disclose the gain or loss, if any, calculated in accordance with
paragraph 25 of IFRS 10
, and:
(a)
the portion of that gain or loss attributable to measuring any investment retained in the former
subsidiary
at its fair value
[
Refer:
]
at the date when
control
is lost
[
Refer:
paragraph 10(b)(iv)
]
; and
(b)
the line item(s) in profit or loss in which the gain or loss is recognised (if not presented separately).
[
Refer:
Basis for Conclusions paragraph BC41
]
Interests in unconsolidated subsidiaries (investment entities)
19A
An investment entity that, in accordance with
, 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:
(a)
the subsidiary’s name;
(b)
the principal place of business (and country of incorporation if different from the principal place of business) of the subsidiary; and
(c)
the proportion of ownership interest held by the investment entity and, if different, the proportion of voting rights held.
19C
If an investment entity is the parent of another investment entity, the parent shall also provide the disclosures in
19B(a)–(c)
for investments that are controlled by its investment entity subsidiary. The disclosure may be provided by including, in the financial statements of the parent, the financial statements of the subsidiary (or subsidiaries) that contain the above information.
19D
An investment entity shall disclose:
(a)
the nature and extent of any significant restrictions (eg resulting from borrowing arrangements, regulatory requirements or contractual arrangements) on the ability of an unconsolidated subsidiary to transfer funds to the investment entity in the form of cash dividends or to repay loans or advances made to the unconsolidated subsidiary by the investment entity; and
[
Refer:
Basis for Conclusions paragraph BC61G
]
(b)
any current commitments or intentions to provide financial or other support to an unconsolidated subsidiary, including commitments or intentions to assist the subsidiary in obtaining financial support.
19E
If, during the reporting period, an investment entity or any of its subsidiaries has, without having a contractual obligation to do so, provided financial or other support to an unconsolidated subsidiary (eg purchasing assets of, or instruments issued by, the subsidiary or assisting the subsidiary in obtaining financial support), the entity shall disclose:
(a)
the type and amount of support provided to each unconsolidated subsidiary; and
(b)
the reasons for providing the support.
[
Refer:
Basis for Conclusions paragraph BC61G
]
19F
An investment entity shall disclose the terms of any contractual arrangements that could require the entity or its unconsolidated subsidiaries to provide financial support to an unconsolidated, controlled, structured entity, including events or circumstances that could expose the reporting entity to a loss (eg liquidity arrangements or credit rating triggers associated with obligations to purchase assets of the structured entity or to provide financial support).
[
Refer:
Basis for Conclusions paragraph BC61G
]
19G
If during the reporting period an investment entity or any of its unconsolidated subsidiaries has, without having a contractual obligation to do so, provided financial or other support to an unconsolidated, structured entity that the investment entity did not control, and if that provision of support resulted in the investment entity controlling the structured entity, the investment entity shall disclose an explanation of the relevant factors in reaching the decision to provide that support.
Interests in joint arrangements and associates
20
An entity shall disclose information that enables users
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10 and 2.36
]
of its financial statements to evaluate:
(a)
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 (
paragraphs 21 and 22
); and
(b)
the nature of, and changes in, the risks associated with its interests in
joint ventures
and associates (
paragraph 23
).
[
Refer:
Basis for Conclusions paragraphs BC42, BC43
,
BC59 and BC60
]
Nature, extent and financial effects of an entity’s interests in joint arrangements and associates
[
Refer:
Basis for Conclusions paragraphs BC44–BC46
]
21
An entity shall disclose:
(a)
for each
joint arrangement
and
associate
that is material to the reporting entity:
(i)
the name of the joint arrangement or associate.
(ii)
the nature of the entity’s relationship with the joint arrangement or associate (by, for example, describing the nature of the activities of the joint arrangement or associate and whether they are strategic to the entity’s activities).
(iii)
the principal place of business (and country of incorporation, if applicable and different from the principal place of business) of the joint arrangement or associate.
(iv)
the proportion of ownership interest or participating share held by the entity and, if different, the proportion of voting rights held (if applicable).
(b)
for each
joint venture
and associate that is material to the reporting entity:
(i)
whether the investment in the joint venture or associate is measured using the equity method
[
Refer:
]
or at fair value
[
Refer:
]
.
(ii)
summarised financial information about the joint venture or associate as specified in
paragraphs B12 and B13
.
E2
[
Refer:
paragraphs B14, B15
and
B17
and
Basis for Conclusions paragraphs BC47–BC52
]
(iii)
if the joint venture or associate is accounted for using the equity method, the fair value of its investment in the joint venture or associate, if there is a quoted market price for the investment.
[
Refer:
Basis for Conclusions paragraph BC61
]
(c)
financial information as specified in
paragraph B16
about the entity’s investments in joint ventures and associates that are not individually material:
(i)
in aggregate for all individually immaterial joint ventures and, separately,
(ii)
in aggregate for all individually immaterial associates.
E2
[IFRIC®
Update
, January 2015, Agenda Decision, ‘IFRS 12
Disclosure of Interests in Other Entities
—Disclosure of summarised financial information about material joint ventures or associates’
The Interpretations Committee received a request to clarify the requirement to disclose summary financial information on material joint ventures or associates in paragraph 21(b)(ii) of IFRS 12
Disclosure of Interests in Other Entities
and its interaction with the aggregation principle in paragraphs 4 and B2–B6 of IFRS 12.
The submitter asserts that there are two ways in which to interpret the application of those paragraphs. Either the information required in paragraph 21(b)(ii) of IFRS 12 can be disclosed in aggregate for all material joint ventures or associates, or such information should be disclosed individually for each material joint venture or associate.
The submitter also asked the Interpretations Committee to clarify the requirements in paragraph 21(b)(ii) of IFRS 12 when the information relates to a listed joint venture or associate, and local regulatory requirements would prevent the investor from disclosing such information until the joint venture or associate has released its own financial statements. Would the investor be excused from disclosing the information?
The Interpretations Committee noted that it expected the requirement in paragraph 21(b)(ii) of IFRS 12 to lead to the disclosure of summarised information on an individual basis for each joint venture or associate that is material to the reporting entity (ie this information should not be presented in aggregate for all material joint ventures or associates). The Interpretations Committee observed that this reflects the IASB's intentions as described in paragraph BC50 of IFRS 12.
The Interpretations Committee also noted that there is no provision in IFRS 12 that permits the non-disclosure of the information required in paragraph 21(b)(ii) of IFRS 12.
The Interpretations Committee was made aware of another concern relating to the disclosures required by IFRS 12 for joint ventures or associates in paragraphs 21(b)(ii), and paragraphs B12 and B13. Some think that these paragraphs do not specify the basis on which an entity should prepare the required summarised financial information for joint ventures and associates. The question raised is whether this information should be presented for each material joint venture or associate on an individual basis, or whether this information should be disclosed for the subgroup of the joint venture or associate together with its investees.
The Interpretations Committee observed that a reporting entity should present the summarised financial information required by paragraph 21(b)(ii) about a joint venture or an associate that is material to the reporting entity based on the consolidated financial statements for the joint venture or associate, if it has subsidiaries. If it does not have subsidiaries, the presentation should be based on the financial statements of the joint venture or associate in which its own joint ventures or associates are equity-accounted. The Interpretations Committee noted that these views are consistent with paragraph B14(a), which states that ‘the amounts included in the IFRS financial statements of the joint venture or associate shall be adjusted to reflect adjustments made by the entity using the equity method, such as fair value adjustments made at the time of acquisition and adjustments for differences in accounting policies’.
The Interpretations Committee analysed the results of the outreach request performed by the staff. This outreach indicated that no significant diversity has been observed in the application of IFRS 12 related to these issues.
In the light of the existing IFRS requirements, and on the basis of the outreach results received, the Interpretations Committee determined that neither an Interpretation nor an amendment to a Standard was necessary and therefore decided not to add this issue to its agenda.]
21A
An investment entity need not provide the disclosures required by
paragraphs 21(b)–21(c)
.
[
Refer:
Basis for Conclusions paragraph BC61F
]
22
An entity shall also disclose:
(a)
the nature and extent of any significant restrictions (eg resulting from borrowing arrangements, regulatory requirements or contractual arrangements between investors with
joint control
of or
significant influence
over a
joint venture
or an
associate
) on the ability of joint ventures or associates to transfer funds to the entity in the form of cash dividends, or to repay loans or advances made by the entity.
(b)
when the financial statements of a joint venture or associate used in applying the
equity method
are as of a date or for a period that is different from that of the entity:
(i)
the date of the end of the reporting period of the financial statements of that joint venture or associate; and
(ii)
the reason for using a different date or period.
(c)
the unrecognised share of losses of a joint venture or associate, both for the reporting period and cumulatively, if the entity has stopped recognising its share of losses of the joint venture or associate when applying the equity method.
Risks associated with an entity’s interests in joint ventures and associates
23
An entity shall disclose:
(a)
commitments that it has relating to its
joint ventures
separately from the amount of other commitments as specified in
paragraphs B18–B20
.
[
Refer:
Basis for Conclusions paragraphs BC53–BC56
]
(b)
in accordance with
Provisions, Contingent Liabilities and Contingent Assets
, unless the probability of loss is remote, contingent liabilities incurred relating to its interests in joint ventures or
associates
(including its share of contingent liabilities incurred jointly with other investors with
joint control
of, or
significant influence
over, the joint ventures or associates), separately from the amount of other contingent liabilities.
[
Refer:
Basis for Conclusions paragraphs BC57 and BC58
]
Interests in unconsolidated structured entities
[
Refer:
Appendix A (definition of a structured entity)
and
Basis for Conclusions paragraphs BC82–BC85
for the definition of a structured entity and to
paragraphs B22–B24
for further information about structured entities]
[
Refer:
Basis for Conclusions paragraphs BC78–BC81
for information about ‘interest in’ unconsolidated structured entities]
[
Refer:
Basis for Conclusions paragraphs BC62–BC77
for the need for the disclosure requirements set out in
paragraphs 24–31
,
B25 and B26
]
24
An entity shall disclose information that enables users
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10
and
2.36
]
of its financial statements:
(a)
to understand the nature and extent of its interests in unconsolidated
structured entities
(
paragraphs 26–28
); and
(b)
to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities (
paragraphs 29–31
).
[
Refer:
paragraphs B25 and B26
]
25
The information required by
paragraph 24(b)
includes information about an entity’s exposure to risk from involvement that it had with unconsolidated
structured entities
in previous periods (eg sponsoring the structured entity), even if the entity no longer has any contractual involvement with the structured entity at the reporting date.
[
Refer:
Basis for Conclusions paragraph BC110
]
25A
An investment entity need not provide the disclosures required by
paragraph 24
for an unconsolidated structured entity that it controls and for which it presents the disclosures required by
paragraphs 19A–19G
.
[
Refer:
Basis for Conclusions paragraph BC61F
]
Nature of interests
26
An entity shall disclose qualitative and quantitative information about its interests in unconsolidated
structured entities
, including, but not limited to, the nature, purpose, size and activities of the structured entity and how the structured entity is financed.
[
Refer:
Basis for Conclusions paragraph BC96
]
27
If an entity has sponsored an unconsolidated
structured entity
for which it does not provide information required by
paragraph 29
(eg because it does not have an interest in the entity at the reporting date), the entity shall disclose:
(a)
how it has determined which structured entities it has sponsored;
(b)
income from those structured entities
during the reporting period, including a description of the types of income presented; and
(c)
the carrying amount (at the time of transfer) of all assets transferred to those structured entities during the reporting period.
[
Refer:
Basis for Conclusions paragraphs BC86–BC91
]
28
An entity shall present the information in
paragraph 27(b) and (c)
in tabular format, unless another format is more appropriate, and classify its sponsoring activities into relevant categories (see
paragraphs B2–B6
).
Nature of risks
[
Refer:
paragraphs B25 and B26
Basis for Conclusions paragraphs BC92–BC114
]
29
An entity shall disclose in tabular format, unless another format is more appropriate, a summary of:
(a)
the carrying amounts of the assets and liabilities recognised in its financial statements relating to its interests in unconsolidated
structured entities
.
(b)
the line items in the statement of financial position in which those assets and liabilities are recognised.
(c)
the amount that best represents the entity’s maximum exposure to loss from its interests in unconsolidated structured entities, including how the maximum exposure to loss is determined. If an entity cannot quantify its maximum exposure to loss from its interests in unconsolidated structured entities it shall disclose that fact and the reasons.
[
Refer:
Basis for Conclusions paragraphs BC97–BC99
and
BC101
]
(d)
a comparison of the carrying amounts of the assets and liabilities of the entity that relate to its interests in unconsolidated structured entities and the entity’s maximum exposure to loss from those entities.
[
Refer:
Basis for Conclusions paragraph BC100
]
30
If during the reporting period an entity has, without having a contractual obligation to do so, provided financial or other support to an unconsolidated
structured entity
in which it previously had or currently has an interest (for example, purchasing assets of or instruments issued by the structured entity), the entity shall disclose
[
Refer:
Basis for Conclusions paragraphs BC102–BC110
]
:
(a)
the type and amount of support provided, including situations in which the entity assisted the
structured entity
in obtaining financial support; and
(b)
the reasons for providing the support.
31
An entity shall disclose any current intentions to provide financial or other support to an unconsolidated structured entity, including intentions to assist the
structured entity
in obtaining financial support.
[
Refer:
Basis for Conclusions paragraphs BC103 and BC104
]
Appendices
Appendix A
Defined terms
This appendix is an integral part of the IFRS.
income from a structured entity
For the purpose of this IFRS, income from a
structured entity
includes, but is not limited to, recurring and non‑recurring fees, interest, dividends, gains or losses on the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of assets and liabilities to the structured entity.
interest in another entity
For the purpose of this IFRS, an interest in another entity refers to contractual and non‑contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, but is not limited to, the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity has
control
or
joint control
of, or
significant influence
over, another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship.
Paragraphs B7–B9
provide further information about interests in other entities.
Paragraphs B55–B57 of IFRS 10
explain variability of returns.
[
Refer:
Basis for Conclusions paragraphs BC107–BC110
]
structured entity
An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who
controls
the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.
Paragraphs B22–B24
provide further information about structured entities.
[
Refer:
Basis for Conclusions paragraphs BC82–BC85
]
The following terms are defined in
(as amended in 2011),
(as amended in 2011),
and
Joint Arrangements
and are used in this IFRS with the meanings specified in those IFRSs:
associate
[
Refer:
IAS 28 paragraph 3
]
consolidated financial statements
[
Refer:
IAS 27 paragraph 4
,
IAS 28 paragraph 3
and
IFRS 10 Appendix A
]
control of an entity
[
Refer:
IFRS 10 Appendix A
]
equity method
[
Refer:
IAS 28 paragraph 3
]
group
[
Refer:
IFRS 10 Appendix A
]
investment entity
[
Refer:
IFRS 10 Appendix A
]
joint arrangement
[
Refer:
IAS 28 paragraph 3
and
IFRS 11 Appendix A
]
joint control
[
Refer:
IAS 28 paragraph 3
and
IFRS 11 Appendix A
]
joint operation
[
Refer:
IFRS 11 Appendix A
]
joint venture
[
Refer:
IAS 28 paragraph 3
and
IFRS 11 Appendix A
]
non‑controlling interest
[
Refer:
IFRS 10 Appendix A
]
parent
[
Refer:
IFRS 10 Appendix A
]
protective rights
[
Refer:
IFRS 10 Appendix A
]
relevant activities
[
Refer:
IFRS 10 Appendix A
]
separate financial statements
[
Refer:
IAS 27 paragraph 4
]
separate vehicle
[
Refer:
IFRS 11 Appendix A
]
significant influence
[
Refer:
IAS 28 paragraph 3
]
subsidiary
.
[
Refer:
IFRS 10 Appendix A
]
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 a particular fact pattern would need to be evaluated when applying IFRS 12.
Aggregation (
paragraph 4
)
[
Refer:
Basis for Conclusions paragraphs BC80 and BC81
]
B2
An entity shall decide, in the light of its circumstances, how much detail it provides to satisfy the information needs of users,
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10 and 2.36
]
how much emphasis it places on different aspects of the requirements and how it aggregates the information. It is necessary to strike a balance between burdening financial statements with excessive detail that may not assist users of financial statements and obscuring information as a result of too much aggregation.
B3
An entity may aggregate the disclosures required by this IFRS for interests in similar entities if aggregation is consistent with the disclosure objective and the requirement in
paragraph B4
, and does not obscure the information provided. An entity shall disclose how it has aggregated its interests in similar entities.
B4
An entity shall present information separately for interests in:
(a)
subsidiaries
;
(b)
joint ventures
;
(c)
joint operations
;
(d)
associates
; and
(e)
unconsolidated
structured entities
.
B5
In determining whether to aggregate information, an entity shall consider quantitative and qualitative information about the different risk and return characteristics of each entity it is considering for aggregation and the significance of each such entity to the reporting entity. The entity shall present the disclosures in a manner that clearly explains to users of financial statements
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10 and 2.36
]
the nature and extent of its interests in those other entities.
B6
Examples of aggregation levels within the classes of entities set out in
paragraph B4
that might be appropriate are:
(a)
nature of activities (eg a research and development entity, a revolving credit card securitisation entity).
(b)
industry classification.
(c)
geography (eg country or region).
Interests in other entities
[
Refer:
Basis for Conclusions paragraphs BC107–BC110
]
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 provide the disclosures in this IFRS. That assessment shall include consideration of the risks that the other entity was designed to create and the risks the other entity was designed to pass on to the reporting entity and other parties.
B8
A reporting entity is typically exposed to variability of returns from the performance of another entity by holding instruments (such as equity or debt instruments issued by the other entity) or having another involvement that absorbs variability. For example, assume a structured entity holds a loan portfolio. The structured entity obtains a credit default swap from another entity (the reporting entity) to protect itself from the default of interest and principal payments on the loans. The reporting entity has involvement that exposes it to variability of returns from the performance of the structured entity because the credit default swap absorbs variability of returns of the structured entity.
B9
Some instruments are designed to transfer risk from a reporting entity to another entity. Such instruments create variability of returns for the other entity but do not typically expose the reporting entity to variability of returns from the performance of the other entity. For example, assume a structured entity is established to provide investment opportunities for investors who wish to have exposure to entity Z’s credit risk (entity Z is unrelated to any party involved in the arrangement). The
structured entity
obtains funding by issuing to those investors notes that are linked to entity Z’s credit risk (credit‑linked notes) and uses the proceeds to invest in a portfolio of risk‑free financial assets. The structured entity obtains exposure to entity Z’s credit risk by entering into a credit default swap (CDS) with a swap counterparty. The CDS passes entity Z’s credit risk to the structured entity in return for a fee paid by the swap counterparty. The investors in the structured entity receive a higher return that reflects both the structured entity’s return from its asset portfolio and the CDS fee. The swap counterparty does not have involvement with the structured entity that exposes it to variability of returns from the performance of the structured entity because the CDS transfers variability to the structured entity, rather than absorbing variability of returns of the structured entity.
Summarised financial information for subsidiaries, joint ventures and associates (
paragraphs 12
and
21
)
[
Refer:
Basis for Conclusions paragraphs BC47–BC52
]
B10
For each
subsidiary
that has
non‑controlling interests
that are material to the reporting entity, an entity shall disclose
[
Refer:
paragraph 12
]
:
(a)
dividends paid to non‑controlling interests.
(b)
summarised financial information about the assets, liabilities, profit or loss and cash flows of the
subsidiary
that enables users
[
Refer:
Conceptual Framework
paragraphs 1.2–1.10 and 2.36
]
to understand the interest that non‑controlling interests have in the group’s activities and cash flows. That information might include but is not limited to, for example, current assets, non‑current assets, current liabilities, non‑current liabilities, revenue, profit or loss and total comprehensive income.
B11
The summarised financial information required by
paragraph B10(b)
shall be the amounts before inter‑company eliminations.
B12
For each
joint venture
and
associate
that is material to the reporting entity, an entity shall disclose
[
Refer:
paragraph 21(b)(ii)
]
:
(a)
dividends received from the joint venture or associate.
(b)
summarised financial information for the joint venture or associate (see
paragraphs B14 and B15
) including, but not necessarily limited to:
(i)
current assets.
(ii)
non‑current assets.
(iii)
current liabilities.
(iv)
non‑current liabilities.
(v)
revenue.
(vi)
profit or loss from continuing operations.
(vii)
post‑tax profit or loss from discontinued operations.
(viii)
other comprehensive income.
(ix)
total comprehensive income.
B13
In addition to the summarised financial information required by
paragraph B12
, an entity shall disclose for each
joint venture
that is material to the reporting entity the amount of:
(a)
cash and cash equivalents included in
paragraph B12(b)(i)
.
(b)
current financial liabilities (excluding trade and other payables and provisions) included in
paragraph B12(b)(iii)
.
(c)
non‑current financial liabilities (excluding trade and other payables and provisions) included in
paragraph B12(b)(iv)
.
(d)
depreciation and amortisation.
(e)
interest income.
(f)
interest expense.
(g)
income tax expense or income.
B14
The summarised financial information disclosed in accordance with
paragraphs B12 and B13
shall be the amounts included in the IFRS financial statements of the
joint venture
or
associate
(and not the entity’s share of those amounts). If the entity accounts for its interest in the joint venture or associate using the
equity method
:
(a)
the amounts included in the IFRS financial statements of the joint venture or associate shall be adjusted to reflect adjustments made by the entity when using the equity method, such as fair value
[
Refer:
]
adjustments made at the time of acquisition and adjustments for differences in accounting policies.
(b)
the entity shall provide a reconciliation of the summarised financial information disclosed to the carrying amount of its interest in the joint venture or associate.
B15
An entity may present the summarised financial information required by
paragraphs B12 and B13
on the basis of the
joint venture's
or
associate's
financial statements if:
(a)
the entity measures its interest in the joint venture or associate at fair value
[
Refer:
]
in accordance with
(as amended in 2011); and
(b)
the joint venture or associate does not prepare IFRS financial statements and preparation on that basis would be impracticable or cause undue cost.
In that case, the entity shall disclose the basis on which the summarised financial information has been prepared.
B16
An entity shall disclose, in aggregate, the carrying amount of its interests in all individually immaterial
joint ventures
or
associates
that are accounted for using the
equity method
. An entity shall also disclose separately the aggregate amount of its share of those joint ventures’ or associates’:
(a)
profit or loss from continuing operations.
(b)
post‑tax profit or loss from discontinued operations.
(c)
other comprehensive income.
(d)
total comprehensive income.
An entity provides the disclosures separately for joint ventures and associates.
B17
When an entity’s interest in a
subsidiary
, a
joint venture
or an
associate
(or a portion of its interest in a joint venture or an associate) is classified (or included in a disposal group that is classified) as held for sale in accordance with
[
Refer:
IFRS 5 paragraphs 6–12A
]
, the entity is not required to disclose summarised financial information for that subsidiary, joint venture or associate in accordance with
paragraphs B10–B16
.
Commitments for joint ventures (
paragraph 23(a)
)
[
Refer:
Basis for Conclusions paragraphs BC53–BC56
]
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 cash or other resources.
B19
Unrecognised commitments that may give rise to a future outflow of cash or other resources include:
(a)
unrecognised commitments to contribute funding or resources as a result of, for example:
(i)
the constitution or acquisition agreements of a
joint venture
(that, for example, require an entity to contribute funds over a specific period).
(ii)
capital‑intensive projects undertaken by a joint venture.
(iii)
unconditional purchase obligations, comprising procurement of equipment, inventory or services that an entity is committed to purchasing from, or on behalf of, a joint venture.
(iv)
unrecognised commitments to provide loans or other financial support to a joint venture.
(v)
unrecognised commitments to contribute resources to a joint venture, such as assets or services.
(vi)
other non‑cancellable unrecognised commitments relating to a joint venture.
(b)
unrecognised commitments to acquire another party’s ownership interest (or a portion of that ownership interest) in a joint venture if a particular event occurs or does not occur in the future.
B20
The requirements and examples in
paragraphs B18 and B19
illustrate some of the types of disclosure required by
paragraph 18 of IAS 24
Related Party Disclosures
.
Interests in unconsolidated structured entities (
paragraphs 24–31
)
Structured entities
B21
A
structured entity
is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who
controls the entity
, such as when any voting rights relate to administrative tasks only and the
relevant activities
are directed by means of contractual arrangements.
[
Refer:
Basis for Conclusions paragraphs BC82–BC85
]
B22
A
structured entity
often has some or all of the following features or attributes:
(a)
restricted activities.
(b)
a narrow and well‑defined objective, such as to effect a tax‑efficient lease, carry out research and development activities, provide a source of capital or funding to an entity or provide investment opportunities for investors by passing on risks and rewards associated with the assets of the structured entity to investors.
(c)
insufficient equity to permit the structured entity to finance its activities without subordinated financial support.
(d)
financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches).
B23
Examples of entities that are regarded as structured entities include, but are not limited to:
(a)
securitisation vehicles.
(b)
asset‑backed financings.
(c)
some investment funds.
B24
An entity that is controlled by voting rights is not a
structured entity
simply because, for example, it receives funding from third parties following a restructuring.
Nature of risks from interests in unconsolidated structured entities (
paragraphs 29–31
)
B25
In addition to the information required by
paragraphs 29–31
, an entity shall disclose additional information that is necessary to meet the disclosure objective in
paragraph 24(b)
.
B26
Examples of additional information that, depending on the circumstances, might be relevant to an assessment of the risks to which an entity is exposed when it has an interest in an unconsolidated
structured entity
are
[
Refer:
Basis for Conclusions paragraphs BC111–BC114
]
:
(a)
the terms of an arrangement that could require the entity to provide financial support to an unconsolidated structured entity (eg liquidity arrangements or credit rating triggers associated with obligations to purchase assets of the structured entity or provide financial support), including:
(i)
a description of events or circumstances that could expose the reporting entity to a loss.
(ii)
whether there are any terms that would limit the obligation.
(iii)
whether there are any other parties that provide financial support and, if so, how the reporting entity’s obligation ranks with those of other parties.
(b)
losses incurred by the entity during the reporting period relating to its interests in unconsolidated structured entities.
(c)
the types of income the entity received during the reporting period from its interests in unconsolidated structured entities.
(d)
whether the entity is required to absorb losses of an unconsolidated structured entity before other parties, the maximum limit of such losses for the entity, and (if relevant) the ranking and amounts of potential losses borne by parties whose interests rank lower than the entity’s interest in the unconsolidated structured entity.
(e)
information about any liquidity arrangements, guarantees or other commitments with third parties that may affect the fair value
[
Refer:
]
or risk of the entity’s interests in unconsolidated structured entities.
(f)
any difficulties an unconsolidated structured entity has experienced in financing its activities during the reporting period.
(g)
in relation to the funding of an unconsolidated structured entity, the forms of funding (eg commercial paper or medium‑term notes) and their weighted‑average life. That information might include maturity analyses of the assets and funding of an unconsolidated structured entity if the structured entity has longer‑term assets funded by shorter‑term funding.
Appendix C
Effective date and transition
This appendix is an integral part of the IFRS and has the same authority as the other parts of the IFRS.
Effective date and transition
C1
An entity shall apply this IFRS for annual periods beginning on or after 1 January 2013. Earlier application is permitted.
[
Refer:
Basis for Conclusions paragraphs BC115–BC118
]
C1A
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
(Amendments to IFRS 10, IFRS 11 and IFRS 12), issued in June 2012, added
paragraphs C2A–C2B
. An entity shall apply those amendments for annual periods beginning on or after 1 January 2013. If an entity applies IFRS 12 for an earlier period, it shall apply those amendments for that earlier period.
[
Refer:
Basis for Conclusions paragraph BC119A
]
C1B
Investment Entities
(Amendments to
, IFRS 12 and
), issued in October 2012, amended
paragraph 2
and
Appendix A
, and added
paragraphs 9A–9B
,
19A–19G
,
21A
and
25A
. An entity shall apply those amendments for annual periods beginning on or after 1 January 2014. Early adoption is permitted. If an entity applies those amendments earlier, it shall disclose that fact and apply all amendments included in
Investment Entities
at the same time.
C1C
Investment Entities: Applying the Consolidation Exception
(Amendments to IFRS 10, IFRS 12 and IAS 28), issued in December 2014, amended paragraph 6. An entity shall apply that amendment for annual periods beginning on or after 1 January 2016. Earlier application is permitted. If an entity applies that amendment for an earlier period it shall disclose that fact.
[
Refer:
Basis for Conclusions paragraph BC119C
]
C1D
Annual Improvements to IFRS Standards 2014–2016 Cycle
, issued in December 2016, added
paragraph 5A
and amended
paragraph B17
. An entity shall apply those amendments retrospectively in accordance with
Accounting Policies, Changes in Accounting Estimates and Errors
1
[
Refer:
IAS 8 paragraph 5 (definition of retrospective application)
and
paragraphs 19–27
]
for annual periods beginning on or after 1 January 2017.
[
Refer:
Basis for Conclusions paragraphs BC8F–BC8I
]
C1E
Presentation and Disclosure in Financial Statements
issued in April 2024 amended
paragraph B14
. An entity shall apply those amendments when it applies
.
C2
An entity is encouraged to provide information required by this IFRS earlier than annual periods beginning on or after 1 January 2013. Providing some of the disclosures required by this IFRS does not compel the entity to comply with all the requirements of this IFRS or to apply
,
,
(as amended in 2011) and
(as amended in 2011) early.
[
Refer:
Basis for Conclusions paragraph BC119
]
C2A
The disclosure requirements of this IFRS need not be applied for any period presented that begins before the annual period immediately preceding the first annual period for which IFRS 12 is applied.
[
Refer:
Basis for Conclusions paragraph BC119A
]
C2B
The disclosure requirements of
paragraphs 24–31
and the corresponding guidance in
paragraphs B21–B26
of this IFRS need not be applied for any period presented that begins before the first annual period for which IFRS 12 is applied.
[
Refer:
Basis for Conclusions paragraph BC119B
]
References to IFRS 9
C3
If an entity applies this IFRS but does not yet apply
, any reference to IFRS 9 shall be read as a reference to
Financial Instruments: Recognition and Measurement
.
Appendix D
Amendments to other IFRSs
This appendix sets out amendments to other IFRSs that are a consequence of the Board issuing IFRS 12. An entity shall apply the amendments for annual periods beginning on or after 1 January 2013. If an entity applies IFRS 12 for an earlier period, it shall apply the amendments for that earlier period. Amended paragraphs are shown with new text underlined and deleted text struck through.
* * * * *
The amendments contained in this appendix when this IFRS was issued in 2011 have been incorporated into the relevant IFRSs published in this volume.
Board Approvals
Approval by the Board of IFRS 12 issued in May 2011
International Financial Reporting Standard 12
Disclosure of Interests in Other Entities
was approved for issue by the fifteen members of the International Accounting Standards Board.
Sir David Tweedie
Chairman
Stephen Cooper
Philippe Danjou
Jan Engström
Patrick Finnegan
Amaro Luiz de Oliveira Gomes
Prabhakar Kalavacherla
Elke König
Patricia McConnell
Warren J McGregor
Paul Pacter
Darrel Scott
John T Smith
Tatsumi Yamada
Wei-Guo Zhang
Approval by the Board of
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
(Amendments to IFRS 10, IFRS 11 and IFRS 12) issued in June 2012
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
(Amendments to IFRS 10, IFRS 11 and IFRS 12) was approved for issue by the fourteen members of the International Accounting Standards Board.
Hans Hoogervorst
Chairman
Ian Mackintosh
Vice-Chairman
Stephen Cooper
Philippe Danjou
Jan Engström
Patrick Finnegan
Amaro Luiz de Oliveira Gomes
Prabhakar Kalavacherla
Patricia McConnell
Takatsugu Ochi
Paul Pacter
Darrel Scott
John T Smith
Wei-Guo Zhang
Approval by the Board of
Investment Entities
(Amendments to IFRS 10, IFRS 12 and IAS 27) issued in October 2012
Investment Entities
(Amendments to IFRS 10, IFRS 12 and IAS 27) was approved for issue by the fifteen members of the International Accounting Standards Board.
Hans Hoogervorst
Chairman
Ian Mackintosh
Vice-Chairman
Stephen Cooper
Philippe Danjou
Martin Edelmann
Jan Engström
Patrick Finnegan
Amaro Luiz de Oliveira Gomes
Prabhakar Kalavacherla
Patricia McConnell
Takatsugu Ochi
Paul Pacter
Darrel Scott
Chungwoo Suh
Zhang Wei-Guo
Approval by the Board of
Investment Entities: Applying the Consolidation Exception
(Amendments to IFRS 10, IFRS 12 and IAS 28) issued in December 2014
Investment Entities: Applying the Consolidation Exception
was approved for issue by the fourteen members of the International Accounting Standards Board.
Hans Hoogervorst
Chairman
Ian Mackintosh
Vice-Chairman
Stephen Cooper
Philippe Danjou
Amaro Luiz De Oliveira Gomes
Martin Edelmann
Patrick Finnegan
Gary Kabureck
Suzanne Lloyd
Takatsugu Ochi
Darrel Scott
Chungwoo Suh
Mary Tokar
Wei-Guo Zhang
Footnotes
1
When it issued
Presentation and Disclosure in Financial Statements
in April 2024, the IASB changed the title of
to
Basis of Preparation of Financial Statements
.
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