ifrs 12: disclosure of interests in other entities

Overview

FRS requires the entities to disclose their interest in other entities to enable the user of the financial statements to evaluate the following factors;

  • The nature and the risks associated with the interest in other entities, and
  • The effect of those risks and interest on the financial position, financial performance, and cash flows position of the entity holding such interest

Scope

IFRS 12 shall be applied by an entity that has an interest  in any of the following;

  • Associates
  • Subsidiaries
  • Joint arrangements
  • Unconsolidated structured entities

This  IFRS does not apply to the following things;

Disclosures

An entity shall disclose the following information at a minimum;

  • The significance of the judgment and assumptions made in the determination of the interest and joint control in other entities

The information about the interest in the following;

  • Subsidiaries
  • Joint arrangements
  • Associate companies
  • Structures entity that is not controlled by another entity