SpecialisedAdvanced · Expert
Restrictions, support and relief
Learning objectives
- Assess the disclosures about restrictions, support and the exemption granted to an investment entity.L3, L4
Normative references
- IFRS 12 §19DThe investment entity discloses: (a) the nature and extent of any significant restrictions (for example, resulting from borrowing arrangements, regulatory requirements or contractual arrangements) on the ability of an unconsolidated subsidiary to transfer funds to it in the form of cash dividends or to repay loans or advances made to it; (b) any current commitments or intentions to provide financial or other support to an unconsolidated subsidiary, including commitments or intentions to assist it in obtaining financial support.
- IFRS 12 §19EIf, during the period, the investment entity or any of its subsidiaries has, without a contractual obligation, provided financial or other support to an unconsolidated subsidiary (for example, purchasing assets of or instruments issued by it, or assisting it in obtaining financial support), the entity discloses the type and amount of support provided to each unconsolidated subsidiary and the reasons for providing the support.
- IFRS 12 §19FThe investment entity discloses the terms of any contractual arrangements that could require it or its unconsolidated subsidiaries to provide financial support to an unconsolidated, controlled, structured entity, including events or circumstances that could expose it to a loss.
- IFRS 12 §19GIf the investment entity or any of its unconsolidated subsidiaries has, without a contractual obligation, provided support to an unconsolidated structured entity that it did not control, and that support resulted in it controlling the entity, it explains the relevant factors in reaching the decision to provide that support.
- IFRS 12 §25AAn investment entity need not provide the disclosures required by para. 24 for an unconsolidated structured entity that it controls, because the disclosures in paras. 19A to 19G apply.
Original summaries of the paragraphs (reference register), never a quotation of the standard.