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IFRS 12Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIFRS 12 — Disclosure of Interests in Other EntitiesL2 · L3 · L4

Disclosures on joint arrangements, associates and unconsolidated structured entities: summarised information, reconciliation to the carrying amount, unrecognised losses, commitments and structured entities

7 missions8 sections to document90 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

For each material joint venture or associate, list the summarised information, the share of net assets, goodwill and adjustments, and reconcile them to the carrying amount; list the unrecognised share of losses and the commitments; take an inventory of the unconsolidated structured entities. Summarised information is individual, never aggregated. Percentages and amounts are case data.

8 sections · 34 blocks · 4 calculations · 0 entries

  • IFRS 12 §21
  • IFRS 12 §B12
  • IFRS 12
  • IFRS 12 §24
  • IFRS 12 §19A
  • IFRS 12 §19B
  • IFRS 12 §25A

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

7 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Material associate and joint venture: individual summarised information, reconciliation to the carrying amount, unrecognised share of losses, commitments and interaction with IFRS 11 and IAS 28
Case tasks documented here
  • Are Marlen and Tosca material, and how should their summarised information be provided?
  • Marlen: compute the share of the summarised net assets.
  • Marlen: reconcile the summarised information to the carrying amount of the interest.
  • Tosca: compute the share of the summarised net assets.
  • Tosca: reconcile the summarised information to the carrying amount of the interest.
  • Valdec: compute the cumulative unrecognised share of the losses at the closing date.
  • How should the commitments, contingent liabilities and restrictions relating to Tosca be presented?
1

Facts and data

Inputs

  • Entity: name, nature of the relationship, principal place of business, share held, measurement method

    TextRequired

    ASSOCIATE_HELD_AT_THIRTY_PERCENT_EQUITY_METHOD

  • Net assets of the entity per the summarised information (100 %)

    Number

    5,000,000

  • Investor's share (%)

    Number

    30 %

  • Goodwill included in the carrying amount of the interest

    Number

    200,000

  • Adjustments increasing the amount (fair value, other)

    Number

    50,000

  • Adjustments decreasing the amount (unrealised profit, other)

    Number

  • Carrying amount of the interest reported in the accounts

    Number

    1,750,000

  • Cumulative unrecognised share of losses at the opening

    Number

  • Unrecognised share of losses for the period

    Number

  • Commitments relating to joint ventures and contingent liabilities

    Text

  • Structured entities: voting rights, relevant activities directed by contract, current and past involvement

    Text

  • Total carrying amount of the interests in unconsolidated structured entities

    Number

  • Carrying amount of the units held in unconsolidated structured entities

    Number

  • Carrying amount of the notes held in unconsolidated structured entities

    Number

  • Restrictions on the transfer of funds and financial support

    Text

  • Investment entity: unconsolidated subsidiaries and consolidation exception

    Text

  • Materiality considerations for each entity

    Text

    MATERIAL_FOR_THE_GROUP

2

Supporting documents

Evidence

  • Documents obtained and referenced (accounts of the entity, equity-method computation, contractual arrangements with the structured entities)

    EvidenceRequired

3

Analysis of the disclosures on joint arrangements, associates and structured entities

Analysis

IFRS 12 §21IFRS 12 §B12IFRS 12IFRS 12 §24IFRS 12 §19AIFRS 12 §19BIFRS 12 §25AIFRS 12

  • Points examined: material entities and structured entities

    ChecklistRequired

    • Name, nature of the relationship, place, share held and measurement method of each material entity
    • Summarised information provided individually, without aggregation or local relief
    • Dividends received from each material entity
    • Reconciliation of the summarised information to the carrying amount of the interest
    • Unrecognised share of losses, for the period and cumulative
    • Commitments and contingent liabilities relating to joint ventures and associates
    • Structured entity: voting rights not dominant, relevant activities directed by contract
    • Nature and extent of the interests in unconsolidated structured entities and associated risks
    • Past involvement, in particular as a sponsor, even without a contractual link at the closing date
    • Investment entity: unconsolidated subsidiaries, restrictions and support
4

Calculations

Calculations

IFRS 12 §21IFRS 12 §B12

  • Share of the summarised net assets (net assets × share)

    Calculation

    1,500,000

    Net assets of the entity per the summarised information (100 %) ; Investor's share (%)

  • Carrying amount of the interest (share + goodwill + adjustments)

    Calculation

    1,750,000

    Share of the summarised net assets (net assets × share) ; Goodwill included in the carrying amount of the interest ; Adjustments increasing the amount (fair value, other) ; − Adjustments decreasing the amount (unrealised profit, other)

  • Cumulative unrecognised share of losses at the closing (opening + period)

    Calculation

    0

    Cumulative unrecognised share of losses at the opening ; Unrecognised share of losses for the period

  • Total carrying amount of the interests in unconsolidated structured entities (units + notes)

    Calculation

    0

    Carrying amount of the units held in unconsolidated structured entities ; Carrying amount of the notes held in unconsolidated structured entities

5

Judgments: materiality, structured entities, restrictions and investment entity

Judgment

IFRS 12 §21IFRS 12 §B12IFRS 12IFRS 12 §24IFRS 12 §19AIFRS 12 §19BIFRS 12 §25AIFRS 12

  • Material joint venture or associate

    JudgmentRequired

    Material: individual summarised information

    Material: individual summarised information / Not material / Not applicable

    Professional judgment: materiality is decided for each entity from the point of view of the financial statements of the group; the standard imposes no numerical threshold.

  • Rationale: importance for the financial statements of the group

    Text

    INDIVIDUAL_SUMMARISED_INFORMATION_WITHOUT_AGGREGATION

  • Structured entity qualification

    Judgment

    Structured entity / Not a structured entity / Not applicable

  • Rationale: dominant factor of control

    Text

  • Restrictions and financial support

    Judgment

    Restrictions or support to describe / No significant restriction or support / Not applicable

  • Rationale: nature and extent

    Text

  • Disclosures of the investment entity

    Judgment

    Disclosures specific to investment entities / Not an investment entity / Not applicable

  • Rationale: consolidation exception and unconsolidated subsidiaries

    Text

6

Items to document for the disclosures on joint arrangements, associates and structured entities

Disclosure

IFRS 12 §21IFRS 12 §B12IFRS 12 §24

  • Information to prepare for each material entity

    Checklist

    • Individual note for each material joint venture and associate
    • Note on the unconsolidated structured entities
7

Conclusion

Conclusion

  • Table per material entity with reconciliation to the carrying amount, unrecognised losses, commitments and inventory of the unconsolidated structured entities

    ConclusionRequired

8

Normative references

References

  • Normative references cited in this workpaper

    References

9

Checks and financial statement impact

  • Entity describedPass
  • Reconciled carrying amount equals the reported amountPass
  • Carrying amount of the interests recalculated = total reportedNot evaluated
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0