Summary of IFRS 12

Objective and scope

The objective of IFRS 12 is to require the disclosure of information that enables users of financial statements to evaluate: [IFRS 12:1] the nature of, and risks associated with, its interests in other entities the effects of those interests on its financial position, financial performance and cash flows.

Where the disclosures required by IFRS 12, together with the disclosures required by other IFRSs, do not meet the above objective, an entity is required to disclose whatever additional information is necessary to meet the objective. [IFRS 12:3]

IFRS 12 is required to be applied by an entity that has an interest in any of the following: [IFRS 12:5] subsidiaries joint arrangements (joint operations or joint ventures) associates unconsolidated structured entities

IFRS 12 does not apply to certain employee benefit plans, separate financial statements to which IAS 27 Separate Financial Statements applies (except in relation to unconsolidated structured entities in some cases), certain interests in joint ventures held by an entity that does not share in joint control, and the majority of interests in another entity accounted for in accordance with IFRS 9 Financial Instruments. [IFRS 12:6] Key definitions

[IFRS 12:Appendix A]Interest in another entity Refers to contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, but is not limited to, the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding, liquidity support, credit

enhancement and guarantees. It includes the means by which an entity has control or joint control of, or significant influence over, another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship. Structured entity An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.

Disclosures required Important note: The summary of disclosures that follows is a high-level summary of the main requirements of IFRS 12. It does not list every specific disclosure required by the standard, but instead highlights the broad objectives, categories and nature of the disclosures required. IFRS 12 lists specific examples and additional disclosures which further expand upon the disclosure objectives, and includes other guidance on the disclosures required. Accordingly, readers should not consider this to be a comprehensive or complete listing of the disclosure requirements of IFRS 12.

Significant judgements and assumptions

An entity discloses information about significant judgements and assumptions it has made (and changes in those judgements and assumptions) in determining: [IFRS 12:7] that it controls another entity that it has joint control of an arrangement or significant influence over another entity the type of joint arrangement (i.e. joint operation or joint venture) when the arrangement has been structured through a separate vehicle.

Interests in subsidiaries

An entity shall disclose information that enables users of its consolidated financial statements to: [IFRS 12:10] understand the composition of the group

understand the interest that non-controlling interests have in the group's activities and cash flows evaluate the nature and extent of significant restrictions on its ability to access or use assets, and settle liabilities, of the group evaluate the nature of, and changes in, the risks associated with its interests in consolidated structured entities evaluate the consequences of changes in its ownership interest in a subsidiary that do not result in a loss of control evaluate the consequences of losing control of a subsidiary during the reporting period.

Interests in joint arrangements and associates

An entity shall disclose information that enables users of its financial statements to evaluate: [IFRS 12:20] 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 associates the nature of, and changes in, the risks associated with its interests in joint ventures and associates.

Interests in unconsolidated structured entities

An entity shall disclose information that enables users of its financial statements to: [IFRS 12:24] understand the nature and extent of its interests in unconsolidated structured entities evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities. Applicability and early adoption