IFRS 12 disclosure of interests in other entities
IFRS 12 mandates companies to disclose ownership information in other companies. This includes subsidiaries, joint ventures, associates, and unconsolidated structured entities.
We present disclosures as a series of objectives, providing detailed guidance on how to satisfy those objectives.
The International Financial Reporting Standards (IFRS) 12 was issued in May 2011 and it applies to annual periods that start on or after 1 January 2013.
IFRS 12 requires an entity to disclose information that enables users of its financial statements to evaluate:
- the type and dangers of its investments in a subsidiary, joint venture, partner, or separate structured entity.
- the effects of those interests on its financial position, financial performance & cash flows.
Standard history
In May 2011 the International Accounting Standards Board issued IFRS 12 Disclosure of Interests in Other Entities. IFRS 12 replaced the disclosure requirements in IAS 27 Consolidated and Separate Financial Statements, IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures.
In June 2012 IFRS 12 was amended by Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12).
These amendments provided additional transition relief in IFRS 12, limiting the requirement to present adjusted comparative information to only the annual period immediately preceding the first annual period for which IFRS 12 is applied.
Furthermore, for disclosures related to unconsolidated structured entities, the amendments removed the requirement to present comparative information for periods before IFRS 12 is first applied.
In October 2012 Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) introduced new disclosure requirements for investment entities that, in accordance with IFRS 10 Consolidated Financial Statements, measure their subsidiaries at fair value through profit or loss instead of consolidating them.
Other Standards have made minor amendments to IFRS 12, including Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) (issued December 2014), Annual Improvements to IFRS® Standards 2014–2016 Cycle (issued December 2016) and Amendments to References to the Conceptual Framework in IFRS Standards (issued March 2018).
Source: IFRS.org
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