IFRS 12Chapter 5Lesson 1
Structured entities: definition, consolidated and unconsolidated risks
Step 1 of 8Learning objectives
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In a structured entity, voting rights are not what decides who controls it. IFRS 12 asks the entity to explain the interests and risks attached to it, whether it is consolidated or not.
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Learning objectives
- Explain that a structured entity is designed so that voting rights are not the dominant factor in deciding who controls it.
- Identify, in a case, whether an entity is a structured entity.
- Explain the objective of the information on unconsolidated structured entities and identify the situations concerned.
- Assess whether the past involvement of a sponsor calls for risk information.
- Assess the information on the risks of a consolidated structured entity, notably financial support.