Group composition

Learning objectives

• Explain that the entity discloses the composition of the group and the interest that non-controlling interests have in the group's activities and cash flows.L1
• Identify the disclosures that meet the objective relating to the composition of the group.L1, L2

Normative references

• IFRS 12 §10The entity discloses information that enables users of its consolidated financial statements to understand the composition of the group and the interest that non-controlling interests have in the group's activities and cash flows (para. 12), and to evaluate the nature and extent of significant restrictions on its ability to access or use assets and settle liabilities of the group (para. 13), the nature of, and changes in, the risks associated with its interests in consolidated structured entities (paras. 14 to 17), the consequences of changes in its ownership interest that do not result in a loss of control (para. 18) and the consequences of losing control of a subsidiary during the period (para. 19).

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

4 questions

• IFRS 12 requires information enabling users of the consolidated financial statements to understand the composition of the group and the share that non-controlling interests have in the group's activities and cash flows.L1
• Which of the following information meets IFRS 12's objective on the composition of the group?L1
• Which statements about the objective of the information on subsidiaries are correct? More than one answer is possible.L2
• The fact that additional information about interests in other entities appears among the low-priority topics of the 2022 post-implementation review does not change the requirements of IFRS 12, including the group-composition objective in paragraph 10.L2