Significant judgements and assumptions

Learning objectives

• Explain that the entity discloses the significant judgements it has made in concluding that it has control, joint control or significant influence.L1
• Identify, in a case, the significant judgements to be explained in the financial statements.L2

Normative references

• IFRS 12 §7The entity discloses information about the significant judgements and assumptions it has made (and changes to them) in determining that it controls another entity, that it has joint control or significant influence, and the type of joint arrangement when the arrangement has been structured through a separate vehicle.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

5 questions

• The entity provides information about the significant judgements and assumptions that allowed it to conclude that it controls another entity, that it has joint control or significant influence.L1
• Which significant judgements and assumptions does IFRS 12 require to be explained in respect of interests in other entities? More than one answer is possible.L2
• Orion SA has concluded that it has significant influence over Vega SA, and it also holds an interest in a joint arrangement run through a separate vehicle with another investor, for which it had to determine the type (case facts). Which significant judgements must it explain?L2
• Where are the criteria for knowing whether one entity controls another found, and what is IFRS 12's role in this respect?L3
• Which statements about how topics are divided between IFRS 11, IAS 28 and IFRS 12 for a joint arrangement are correct? More than one answer is possible.L3