Page 40 - Topic 1 - 1.3. Business Combinations

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

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