Page 38 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

IFRS 12 Introduction

• New standard released in May 2011

• Effective 1 January 2013, along with batch of revised and new group
standards

• Houses all disclosure requirements relating to consolidated financial

statements

• Is to groups what IFRS 7 is to financial instruments

• Introduces the concept of “unconsolidated structured entities”

• Structured entity: designed so that voting rights are not the dominant
factor in deciding control
• Required to disclose details of interests if such entities not consolidated

• Attempts to correct the problems highlighted by the financial crisis

• Objective: enable users to evaluate

• Nature of interests in other entities and associated risks, and

• Effect of those interests on financial position and performance and cash
flows

• Prescribes minimum disclosures to meet objective

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