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ImportantBeginner

Objective and scope

Learning objectives

  • Explain that the Standard requires information that enables users to evaluate the nature of interests in other entities, the associated risks and their financial effects.L1
  • Identify, from the facts of a case, whether an interest falls within the scope of the Standard.L1

Normative references

  • IFRS 12 §1The objective is to require the disclosure of information that enables users to evaluate the nature of interests in other entities and the risks associated with them, and the effects of those interests on financial position, financial performance and cash flows. Para. 3 adds that the entity discloses any additional information necessary if the required disclosures are not sufficient to meet that objective.
  • IFRS 12 §3If the disclosures required by the Standard, together with those required by other IFRS Standards, do not meet the objective in para. 1, the entity discloses whatever additional information is necessary to meet that objective.
  • IFRS 12 §5The Standard applies to an entity that has an interest in any of the following: subsidiaries, joint arrangements (joint operations or joint ventures), associates, unconsolidated structured entities.
  • IFRS 12 §6The Standard does not apply to: (a) post-employment benefit plans or other long-term employee benefit plans to which IAS 19 applies; (b) separate financial statements to which IAS 27 applies, with two exceptions: an entity that has interests in unconsolidated structured entities and prepares separate financial statements as its only financial statements applies paras. 24 to 31, and an investment entity that measures all of its subsidiaries at fair value through profit or loss provides the disclosures relating to investment entities; (c) an interest held by a party that participates in a joint arrangement but does not have joint control, unless that interest results in significant influence or is an interest in a structured entity; (d) an interest accounted for in accordance with IFRS 9, unless it is an interest in an associate or joint venture measured at fair value through profit or loss in accordance with IAS 28, or an interest in an unconsolidated structured entity.

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

3 questions

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