Disclosure of Interests in Other Entities

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).

CONTENTS

from paragraph

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 for International Financial Reporting Standards. IFRS 12 should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.