Objective of the unconsolidated entity disclosures

Learning objectives

• Explain the objective of the disclosures about the nature and extent of interests in unconsolidated structured entities and the associated risks.L2
• Identify the situations that require disclosures about unconsolidated structured entities.L2

Normative references

• IFRS 12 §24The entity discloses information that enables users to understand the nature and extent of its interests in unconsolidated structured entities (paras. 26 to 28) and to evaluate the nature of, and changes in, the associated risks (paras. 29 to 31).

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

2 questions

• A colleague writes: "The information on unconsolidated structured entities in paragraph 24 also applies to the structured entities that our group consolidates." What is the error in this reasoning?L2
• Gamma SA holds an interest in a securitisation fund, a structured entity that it does not consolidate (case facts). What is the objective of the information that IFRS 12 asks it to provide in this respect?L2