(Summary) Ind AS 112
Disclosure of Interest in other Entities
is to require an entity to disclose information that enables users of its financial statements to evaluate:
- the nature of, and risks associated with, its interests in other entities; and
- the effects of those interests on its financial position, financial performance and cash flows.
To meet the objective in paragraph 1, an entity shall disclose:
- the significant judgements and assumptions it has made in determining:
- the nature of its interest in another entity or arrangement;
- the type of joint arrangement in which it has an interest;
- that it meets the definition of an investment entity, if applicable; and
- information about its interests in:
- arrangements and associates; and
- structured entities that are not controlled by the entity (unconsolidated structured entities).
Applied by an entity that has an interest in any of the following:
- joint arrangements (i.e. joint operations or joint ventures)
- unconsolidated structured entities.
- Employee Benefits
- Separate FS
- Financial Instruments
However, an entity applies this Ind AS:
- Ind AS 28, Investments in Associates and JV
- Interest is an interest in an unconsolidated structured entity.
- Income from a structured entity
- Interest in another entity
Income from a structured entity: For the purpose of this Ind AS, income from a structured entity includes, but is not limited to, recurring and non-recurring fees, interest, dividends, gains or losses on the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of assets and liabilities to the structured entity.
Significant judgements and assumptions:
Disclose information about significant judgements and assumptions made in determining:
- that the entity has control of another entity;
- that it has joint control of an arrangement or significant influence over another entity; and
- the type of joint arrangement when the arrangement has been structured through a separate vehicle.
Interests in subsidiaries:
Disclose information that enables users of CFS
- to understand:
- the composition of the group; and
- the interest that NCIs have in the group’s activities and cash flows; and
- to evaluate:
- the nature and extent of significant restrictions on its ability to access or use assets, and settle liabilities, of the group;
- the nature of, and changes in, the risks associated with its interests in consolidated structured entities;
- the consequences of changes in its ownership interest in a subsidiary that do not result in a loss of control;
- and the consequences of losing control of a subsidiary during the reporting period.
Interests in unconsolidated subsidiaries:
An investment entity that is required to apply the exception to consolidation and instead account for its investment in a subsidiary at FVTPL should disclose that fact.
Interests in joint arrangements and associates:
Disclose information that enables users of FS to evaluate:
- The nature, extent and financial effects of its interests in joint arrangements and associates, including the nature and effects of its contractual relationship with the other investors with joint control of, or Significant influence over, joint arrangements and association;
- The nature of, and changes in, the risks associated with its interests in JV and associates.
Interests in unconsolidated structured entities:
Disclose information that enables users of FS:
- To understand the nature and extent of its interests in unconsolidated structured entities; and
- To evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities.