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INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Objectives/outcomes

• After you have studied this learning unit, you should be able to demonstrate knowledge of:

• 1. Disclosures in the consolidated or group financial statements:

• 1.1 Disclose significant judgements and assumptions that an entity made in determining that it has control of another
entity, joint control of an arrangement or significant influence over another entity.

• 1.2 Disclose significant judgements and assumptions that an entity made in determining the type of joint arrangement (i.e.
joint operation or joint venture).
• 1.3 Disclose an entity’s interests in subsidiaries, interests in joint arrangements and associates and interests in
unconsolidated structured entities.

• 2. Disclose the following for an interest in a subsidiary:

• 2.1 The interest that non-controlling interests have in the group’s activities and cash flows.
• 2.2 The nature and extent of significant restrictions.

• 2.3 Nature of the risks associated with an entity’s interests in consolidated structured entities.

• 2.4 Consequences of changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control.

• 2.5 Consequences of losing control of a subsidiary during the reporting period.

• 3. Disclose the following for interests in joint arrangements and associates:

• 3.1 Nature, extent and financial effects of an entity’s interests in joint arrangements and associates.

• 3.2 Risks associated with an entity’s interests in joint ventures and associates.
• 4. Disclose the following for interests in unconsolidated structured entities:

• 4.1 Nature of interests. 4.2 Nature of risks.

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