Page 40 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

IFRS 12 Overview

• 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

40