ifrs 12: disclosure of interests in other entities


IFRS 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.

Key Takeaway Points

This standard is too short as all the standard can quickly go through at a glance so we are not presenting key points for this standard.


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:

=> Post-employment benefits (covered under IAS 19)

=> An entity that holds interest in another entity but has no control over the other entity.

=> An interest in other entities that are accounted for under the IFRS 9 –Financial Instruments


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.