IFRS 12: Disclosure of Interests in Other Entites

IFRS 12 requires an entity to disclose information that enables users of its financial statements to evaluate:

• the nature of, and risks associated with, its interests in a subsidiary, a joint arrangement, an associate or an unconsolidated structured entity; and
• the effects of those interests on its financial position, financial performance and cash flows.

IFRS 12.A. A ‘structured entity’ is 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 only to administrative tasks and the relevant activities are directed by means of contractual arrangements.