Question bank — IFRS 12 — Disclosure of Interests in Other Entities
50 questions in FR/EN/ES, scored by the real scoring engine.
Objective and scope3 questions
- What is the objective of the disclosures required by IFRS 12?Single choiceL1
- IFRS 12 sets the rules for recognising and measuring the entity's subsidiaries, joint arrangements and associates.True / falseL1
- Atria SA holds the following interests or positions (case facts). Which fall within the scope of IFRS 12? (Several answers.)Multiple choiceL1
Interests held for sale1 question
Level of detail and aggregation2 questions
- Delta SA has two material joint ventures, Aqua and Terra, operating in neighbouring sectors. It considers adding their summarised financial information into a single table headed "joint ventures" (case facts). What is concluded?Single choiceL2Variant
- The general aggregation and disaggregation principle in paragraph 4 allows the summarised financial information of several material joint ventures to be aggregated into a single table.True / falseL2Variant
Significant judgements and assumptions3 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.True / falseL1Variant
- 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.Multiple choiceL2
- 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?Single choiceL2Variant
When facts change2 questions
- During the period, a change in facts and circumstances leads Pluton SA to conclude that it no longer controls Mars SA, whereas it controlled it at the start of the period (case facts). What does IFRS 12 ask it to include among the significant judgements explained?Single choiceL2
- The significant judgements to be explained include those made when facts and circumstances change in such a way that the conclusion on control, joint control or significant influence changes during the period.True / falseL2
Examples of significant judgements3 questions
- A colleague writes: "IFRS 12 cites 20% and 50%: these are thresholds; an entity holding 15% of the voting rights of another entity therefore has no significant influence judgement to explain." What is the error in this reasoning?Single choiceL2Variant
- Sirène SA holds 45% of the voting rights of Mer SA; the other rights are spread among many small holders, none of whom holds more than 3% (case facts). Based on these facts, Sirène has concluded that it controls Mer. What does IFRS 12 ask of Sirène?Single choiceL2Variant
- Alma Group holds 48% of the voting rights of Brio SA, the rest being dispersed among many holders; Alma has concluded that it controls Brio. It also holds 15% of Cime SA, sits on its board and takes part in its financial and operating policy decisions; Alma has concluded that it has significant influence over Cime (case facts, percentages included). Write a short note stating the judgements to be explained and the nature of the explanation to provide, distinguishing rule, case facts and professional judgement.JudgmentL3
Investment entity status1 question
Group composition3 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.True / falseL1
- Which of the following information meets IFRS 12's objective on the composition of the group?Single choiceL1
- Which statements about the objective of the information on subsidiaries are correct? More than one answer is possible.Multiple choiceL2
Material non-controlling interests3 questions
- Lune SA controls Saturne SA, a subsidiary whose non-controlling interests, held at …, are material (case data). Saturne's profit: …. Accumulated non-controlling interests at the start: …. Their share of other comprehensive income: …; dividends paid to them: …. Case convention: no intragroup adjustment. Calculate the profit allocated to non-controlling interests and their closing accumulated balance, two amounts that a subsidiary with material non-controlling interests brings out in the information required by paragraph 12.CalculationL2Variant
- Cyrus SA controls Dune SA, which pays … in dividends; … of those dividends go to the non-controlling interests (case data). Case convention: the share going to Cyrus is eliminated on consolidation, and the payment to the non-controlling interests is made in cash on the day of the distribution. Record the consolidation entry for the dividend paid to the non-controlling interests.Journal entryL2Variant
- Alpha SA is a subsidiary of Lotus Group. Seen from its own separate financial statements, Alpha's non-controlling interests appear significant; set against Lotus's consolidated financial statements, they are small (case facts). From which viewpoint is materiality assessed, in light of the Interpretations Committee's 2015 decision?Single choiceL3
Summarised information on subsidiaries2 questions
- Summarised information about a subsidiary with material non-controlling interests is presented after intragroup eliminations.True / falseL2Variant
- Omega SA is a subsidiary with material non-controlling interests. Its revenue is 2,000,000 in its own accounts, of which 500,000 is sales to its parent, eliminated in the consolidated accounts (case facts). What amount of revenue appears in the subsidiary's summarised information?Single choiceL2Variant
Significant restrictions2 questions
- Which items are to be reported as significant restrictions on the group's ability to access assets and settle liabilities? More than one answer is possible.Multiple choiceL2
- Nova Group includes the subsidiary Sud SA. (a) A financing agreement forbids Sud from paying dividends while its debt exceeds a set level; (b) the local regulator imposes a minimum level of equity on Sud; (c) Sud's minority shareholders have a veto over the sale of its main assets (case facts). Write a short note identifying the restrictions to report, distinguishing rule, case facts and professional judgement.JudgmentL2
Risks of consolidated structured entities1 question
Changes in ownership without loss of control2 questions
- Perle SA, which controls Quartz SA, acquires part of Quartz's non-controlling interests without losing control. The carrying amount of the interests acquired is …; Perle pays … (case data). Case convention: no goodwill or other comprehensive income to reallocate (a choice made for the case, not imposed by the standard). Calculate the effect on equity attributable to owners of the parent, which IFRS 12 asks to be presented in a schedule (a negative amount indicates a decrease).CalculationL2Variant
- Marne SA, which controls Oise SA, acquires part of Oise's non-controlling interests, with a carrying amount of …, for … in cash, and keeps control (case data). Case convention: no goodwill or other comprehensive income to reallocate (a choice made for the case, not imposed by the standard). Record the consolidation entry for this purchase.Journal entryL3Variant
Loss of control2 questions
- Titan SA loses control of Pollux SA by selling part of its shares; it keeps an investment whose fair value at the date of loss of control is … and whose carrying amount is … (case data). Calculate the part of the gain on loss of control attributable to remeasuring the retained investment to fair value, a part that IFRS 12 asks to be disclosed.CalculationL3
- A colleague writes: "On loss of control of a subsidiary, IFRS 12 asks only for the total gain or loss on the disposal to be disclosed; the portion arising from remeasuring the retained investment and the line item in profit or loss that includes it need not be specified." What is the error?Single choiceL2
Material joint arrangements and associates4 questions
- For which interests does IFRS 12 require the name, nature of the relationship, principal place of business, ownership held, measurement method and summarised financial information?Single choiceL1
- What information does IFRS 12 require for a material joint venture or associate? More than one answer is possible.Multiple choiceL2
- Lys Group holds three interests: an associate Alpha and a joint venture Bêta, which management considers material, and an associate Gamma, considered not material (case facts, materiality judgement included). Write a short note stating the information to provide for each, distinguishing rule, case facts and professional judgement.JudgmentL2
- What is the objective of the IFRS 12 disclosures on interests in joint arrangements and associates?Single choiceL1
Summarised information, entity by entity2 questions
- A colleague writes: "The summarised information of our two material associates can be grouped in a single table, because local regulation makes it difficult to publish one of them separately." What is the error in this reasoning?Single choiceL2Variant
- Summarised financial information about material joint ventures and associates is provided individually for each of them, without aggregation.True / falseL3Variant
Reconciliation to the carrying amount1 question
Unrecognised losses and restrictions1 question
Commitments and contingent liabilities1 question
Definition of a structured entity3 questions
- Any entity that has few voting rights is a structured entity within the meaning of IFRS 12.True / falseL1Variant
- Titri is a securitisation vehicle: its voting rights relate to administrative tasks only, and its relevant activities are directed by contractual arrangements (case facts). How is Titri characterised under IFRS 12?Single choiceL2Variant
- Boa SA is a fund whose units carry a voting right proportional to contributions, exercised at a meeting; the meeting decides the investment policy and the other relevant activities, and no contractual arrangement directs those activities in its place (case facts). How is Boa characterised under IFRS 12?Single choiceL2Variant
Objective of the unconsolidated entity disclosures2 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?Single choiceL2
- 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?Single choiceL2