IFRS AT A GLANCE

IFRS 12 Disclosure of Interest

in Other Entities
 Effective Date
Page 1 of 3
Periods beginning on or after 1 January 2013

IFRS 12 Disclosure of Interests in Other Entities

SCOPE DEFINITIONS SIGNIFICANT JUDGEMENTS AND
ASSUMPTIONS
Applied by entities that have an interest in: Subsidiaries; joint Structured entity - An entity that has been designed so that voting or similar rights are not the dominant
arrangements, associates; and unconsolidated structured factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks Disclose information about significant
entities. only and the relevant activities are directed by means of contractual arrangements. judgements and assumptions the
made (and changes to those
IFRS 12 does not apply to: Income from a structured entity – Includes (but not is limited to) fees, interest, dividends, gains or
judgements and assumptions) in
Post-employment benefit plans or other long-term employee losses on the remeasurement or derecognition of interests in structured entities and gains or losses from
 determining:
benefit plans to which IAS 19 Employee Benefits applies the transfer of assets and liabilities to the structured entity.
 Control over another entity
 Separate financial statements, where IAS 27 Separate Interest in another entity - Refers to contractual and non-contractual involvement that exposes an entity
 Joint control over an arrangement
Financial Statements applies to variability of returns from the performance of the other entity. Evidenced by holding: debt
 Significant influence over another
 An interest held by an entity that participates in, but does instruments, equity instruments, and other forms of involvement.
entity
not have joint control or significant influence over, a joint The following terms used in IFRS 12 are defined in IAS 27 Separate Financial Statements, IAS 28  When a joint arrangement has
arrangement Investments in Associates and Joint Ventures IFRS 10 Consolidated Financial Statements, and IFRS 11 been structured through a separate
 Interests accounted for in accordance with IFRS 9 Financial
Joint Arrangements: vehicle, its classification (i.e. joint
Instruments, except for Interests in an associate or joint
Associate; consolidated financial statements; control of an entity; equity method; group; joint operation or joint venture).
venture measured at fair value as required by IAS 28 

Investments in Associates and Joint Ventures. arrangement; joint control; joint operation; joint venture; non-controlling interest (NCI); parent;
Some, but not all, disclosure requirements apply to interests protective rights; relevant activities; separate financial statements; separate vehicle; significant
classified as held for sale in accordance with IFRS 5. influence; and subsidiary.
 Effective Date
Page 2 of 3
Periods beginning on or after 1 January 2013

IFRS 12 Disclosure of Interests in Other Entities

(a) INTERESTS IN SUBSIDIARIES – REQUIRED DISCLOSURES

Information that enables users… (i) Composition of the group and NCI interests in (ii) Nature and extent of restrictions (iii) Nature of risks in consolidated structured
To understand: group activities Significant restrictions on ability to access or use entities (CSE)

(i) The composition of the group and the interest Composition of the group the assets and settle the liabilities of the group, Terms of any contractual arrangements that could
that NCI’s have in the group’s activities and cash For each subsidiary with material NCI’s: such as: require the parent or its subsidiaries to provide
flows.  Those that restrict the ability to transfer cash or financial support to a CSE.
 Name of the subsidiary
To evaluate:  Principal place of business and country of other assets to (or from) other entities within the If financial or other support has been provided to a
incorporation of the subsidiary group CSE in the absence of a contractual obligation to do
(ii) The nature and extent of significant restrictions  Guarantees or other requirements that may so:
on the ability to access or use assets, and settle  Proportion of ownership interests held by NCI
 Proportion of NCI voting rights, if different from restrict dividends and other capital distributions  The type and amount of support provided,
liabilities, of the group being paid, or loans and advances being made or
the proportion of ownership interests held including obtaining financial support, and
(iii) The nature of, and changes in, the risks  Profit or loss allocated to non-controlling repaid, to (or from) other entities within the  The reasons for providing the support.
associated with interests in consolidated interests of the subsidiary during the reporting group.
structured entities If financial (or other) support has been provided to a
period The nature and extent to which protective rights of previously unconsolidated structured entity that
(iv) The consequences of changes in ownership  Accumulated NCI of the subsidiary at the end of NCI can significantly restrict the entity’s ability to resulted in control, explanation of the relevant
interest in a subsidiary that do not result in a loss the reporting period access or use the assets and settle the liabilities of factors in reaching that decision.
of control  Summarised financial information about the the group.
subsidiary. Any current intentions to provide financial (or
(v) The consequences of losing control of a The carrying amounts of the assets and liabilities to other) support to a consolidated structured entity
subsidiary during the reporting period. which those restrictions apply. (including any intentions to assist in obtaining
financial support).

(iv) Consequences of changes in a parent’s ownership interest in a (v) Consequences of losing control of a subsidiary
subsidiary that do not result in a loss of control Disclose the gain or loss, if any, and:
Present a schedule showing the effects on the equity (attributable to  The portion of that gain or loss attributable to measuring any investment retained
owners of the parent) of any changes in ownership interest that do not in the former subsidiary at its fair value at the date when control is lost
result in a loss of control.  The line item(s) in profit or loss in which the gain or loss is recognised.
 Effective Date
Page 3 of 3
Periods beginning on or after 1 January 2013

IFRS 12 Disclosure of Interests in Other Entities

(b) INTERESTS IN JOINT ARRANGEMENTS AND ASSOCIATES – REQUIRED DISCLOSURES

Information that enables users to evaluate: (i) Risks associated with an entity’s interests in joint ventures and associates
(i) The nature of, and changes in, risks associated with interests held Commitments relating to joint ventures
(ii) The nature, extent, and financial effects of interests in joint arrangements and associates (including contractual Contingent liabilities incurred relating to joint ventures or associates (including its share of contingent liabilities incurred
relationships with the other investors with joint control or significant influence). jointly with other investors), unless the probability of loss is remote.

(ii) Nature, extent and financial effects of an entity’s interests in joint arrangements and associates

 The name of the joint arrangement or associates  Financial information about the entity’s investments in joint ventures and associates that are not individually material:
 The nature of the entity’s relationship with the joint arrangement or associate ‒ In aggregate for all individually immaterial joint ventures
 The principal place of business (and country of incorporation, if applicable and different from the principal place of ‒ In aggregate for all individually immaterial associates.
business) of the joint arrangement or associate  The nature and extent of any significant restrictions on the ability of joint ventures or associates to transfer funds to the
 The proportion of ownership interest or participating share held by the entity and, if different, the proportion of voting entity in the form of cash dividends, or to repay loans or advances made by the entity
rights held (if applicable)  When there is a difference in reporting date of a joint venture or associate’s financial statements used in applying the
 Measurement: whether equity method or at fair value equity method:
 If measured using equity method: the fair value of its investment in the joint venture or associate (if a quoted market price ‒ The date of the end of the reporting period of the financial statements of that joint venture or associate.
is available) ‒ The reason for using a different date or period.
 Summarised financial information about the joint venture or associate.  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.

(c) INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES (UCSE) – REQUIRED DISCLOSURES

Information that enables users… (i) Nature of interests (ii) Nature of risks
To understand: Qualitative and quantitative information, including (but not limited to): Disclose in tabular format (unless another format is more appropriate) a summary of:
(i) The nature and extent of its  Nature, purpose, size and activities of the structured entity and how the  The carrying amounts of the assets and liabilities recognised in its financial statements relating to interests in UCSE.
interests in UCSE. structured entity is finance  The line items in the statement of financial position in which those assets and liabilities are recognised
To evaluate: If an entity has sponsored UCSE, for which it does not provide information  The amount that best represents the entity’s maximum exposure to loss from its interests in UCSE, including how the maximum
(e.g. because it holds no interest at reporting date), disclose: exposure to loss is determined. If an entity cannot quantify its maximum exposure to loss from its interests in UCSE it is required to
(ii) The nature of, and changes in, disclose that fact and the reasons
 How it has determined which structured entities it has sponsored
the risks associated with its interests  A comparison of the carrying amounts of the assets and liabilities of the entity that relate to its interests in UCSE and the entity’s
 Income from those structured entities during the reporting period,
in UCSE. maximum exposure to loss from those entities.
including a description of types of income presented
Including, information about the  The carrying amount (at the time of transfer) of all assets transferred to
If during the reporting period an entity has, without having a contractual obligation to do so, provided financial (or other) support to an
exposure to risk from involvement in those structured entities during the reporting period. UCSE in which it previously had or currently has an interest, disclose:
previous periods (even if the entity An entity is required to present the information above:  The type and amount of support provided, including situations in which the entity assisted the structured entity in obtaining financial
no longer has any contractual support
involvement with the entity at  In tabular format (unless another format is more appropriate)
 The reasons for providing the support.
reporting date).  Classify its sponsoring activities into relevant categories.
An entity is required to disclose any current intentions to provide financial or other support to UCSE, including intentions to assist the
structured entity in obtaining financial support.
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