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WorkpaperIFRS 12 — Disclosure of Interests in Other EntitiesL1 · L2 · L3

Checklist of the scope, the level of detail and the significant judgments: control, joint control, significant influence and investment entity

4 missions8 sections to document60 min
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Status
Published

Objective of the workpaper

List the interests held in other entities and management's conclusion on control, joint control or significant influence, then decide which judgments to explain and the level of detail. Percentages of voting rights and attendance at meetings are case data: none is presented as a threshold of the standard, and materiality remains a judgment.

8 sections · 20 blocks · 1 calculation · 0 entries

  • IFRS 12 §1
  • IFRS 12 §4
  • IFRS 12 §7
  • IFRS 12 §9
  • IFRS 12 §9A
  • IFRS 12 §9B

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

4 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Objective, scope and significant judgments of a group: control without a majority, significant influence below 20 % and unconsolidated structured entity
Case tasks documented here
  • In which category of interests does each investee fall, and what does IFRS 12 aim at?
  • Noral: what share of the votes cast does Valmer hold, and which judgment must be explained?
  • Pestel: which judgment must be explained about significant influence with less than 20 % of the voting rights?
  • Quarvel: is it a structured entity, and does Valmer consolidate it?
  • Which disclosures on the composition of the group and on the non-controlling interests of Noral must be provided?
1

Facts and data

Inputs

  • Interests held: entities, nature of each interest, management conclusion

    TextRequired

    THIRTY_SIX_PERCENT_OF_VOTES_DISPERSED_OTHER_HOLDERS_SUBSIDIARY_CONSOLIDATED

  • Voting rights held in the entity (%)

    Number

    36 %

  • Share of the votes cast at the last meetings (%)

    Number

    80 %

  • Average attendance at recent meetings (% of voting rights)

    Number

    45 %

  • Indicators of significant influence or of control without a majority (board, policies, transactions)

    Text

    MAJORITY_OF_THE_BOARD_APPOINTED_IN_PRACTICE_AND_RELEVANT_ACTIVITIES_DIRECTED

  • Changes in facts during the period that changed a conclusion

    Text

  • Investment entity status: characteristics present and absent

    Text

  • Materiality considerations from the point of view of the consolidated financial statements

    Text

2

Supporting documents

Evidence

  • Documents obtained and referenced (articles, attendance records, management notes)

    EvidenceRequired

3

Analysis of the scope and of the level of detail

Analysis

IFRS 12 §1IFRS 12 §4IFRS 12 §7IFRS 12 §9IFRS 12 §9AIFRS 12 §9BIFRS 12

  • Points examined: objective, detail and judgments

    ChecklistRequired

    • Objective: nature of the interests, associated risks and financial effects
    • Level of detail, weight of each requirement, aggregation or disaggregation
    • Significant judgments and assumptions on control, joint control and significant influence
    • Changes in facts changing a conclusion during the period
    • Examples: control without a majority, no control despite a majority, principal or agent, significant influence below 20 %
    • Interests held for sale or discontinued operations (IFRS 5)
    • Investment entity status and change of status
4

Calculations

Calculations

IFRS 12 §7

  • Weight in the votes cast (voting rights ÷ attendance × 100, %)

    Calculation

    80 %

    Voting rights held in the entity (%) ; Average attendance at recent meetings (% of voting rights)

5

Judgments: judgments to explain, materiality and investment entity status

Judgment

IFRS 12 §1IFRS 12 §4IFRS 12 §7IFRS 12 §9IFRS 12 §9AIFRS 12 §9BIFRS 12

  • Significant judgment to explain in the notes

    JudgmentRequired

    Judgment to explain

    Judgment to explain / No significant judgment / Not applicable

    Professional judgment: the standard sets no percentage of voting rights; the entity explains the judgments and assumptions that led to its conclusion, including when it departs from what the percentage would suggest.

  • Rationale: facts and assumptions that support the conclusion

    Text

    CONTROL_WITH_LESS_THAN_HALF_OF_THE_VOTING_RIGHTS

  • Materiality of the interests and level of detail

    Judgment

    Material: individual disclosure / Not material: aggregation possible / Not applicable

    Professional judgment: materiality is assessed from the point of view of the consolidated financial statements; the standard imposes no numerical threshold.

  • Rationale: point of view of the consolidated financial statements

    Text

  • Disclosures on investment entity status

    Judgment

    Disclosures specific to investment entities / Not an investment entity / Not applicable

  • Rationale: characteristics present and absent

    Text

6

Items to document for the disclosures on judgments

Disclosure

IFRS 12 §7IFRS 12 §9IFRS 12 §9AIFRS 12 §9B

  • Information to prepare on judgments

    Checklist

    • Judgments on the control of another entity
    • Judgments on joint control and significant influence
    • Judgments on investment entity status, and change of status
7

Conclusion

Conclusion

  • List of the significant judgments to explain and the level of detail retained, with no percentage presented as a threshold of the standard

    ConclusionRequired

8

Normative references

References

  • Normative references cited in this workpaper

    References

9

Checks and financial statement impact

  • Interests describedPass
  • Judgment to explain decided and supportedPass
  • Weight in the votes cast recalculated = amount retained (judgment indicator, no threshold)Pass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0