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IFRS 12 summary and timeline

A summary of IFRS 12 Disclosure of interests in other entities, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.

Summary

IFRS 12 applies to any entity which has an interest in a subsidiary, joint arrangement, associate or unconsolidated structured entity.

Its objective is to require the disclosure of information which enables users of financial statements to evaluate:

  • The nature of, and risks associates with, its interests in other entities, and
  • The effects of those interests on its financial position, financial performance and cash flows.

In order to meet this objective, entities are required to make the following disclosures:

  • Significant judgements and assumptions made in determining control, joint control or significant influence and type of joint arrangement.
  • Information on interests in subsidiaries such that the composition of the group and non-controlling interest is understood and restrictions, risks and changes in ownership can be evaluated.
  • Information on interests in associates and joint arrangements such that the nature and extent of the interests, financial effects and associated risks can be evaluated.
  • Information on interests in unconsolidated structured entities such that the nature and extent of the interests and associated risks can be evaluated.

Current proposals

The Board issued ED/2019/7 General Presentation and Disclosures in December 2019. The exposure draft proposes a new IFRS Standard to replace IAS 1. One of the proposed changes is to require the disclosure of amounts derived from integral associates and joint ventures and non-integral associates and joint ventures. A consequential amendment to IFRS 12 would add definitions of integral and non-integral associates and joint ventures, provide guidance on classifying associates and joint ventures as integral or non-integral and identify when this classification is changed.

Timeline

Date Update
8 December 2016 IASB issues Annual Improvements to IFRS Standards 2014 – 2016 Cycle (amendments to IFRS 12)
Effective for annual periods starting on or after 1 January 2017.
18 December 2014 IASB issues Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)
Effective for annual periods starting on or after 1 January 2016.
31 October 2012 IASB issues Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
Effective for annual periods starting on or after 1 January 2014.
28 June 2012 IASB issues Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12)
Effective for annual periods starting on or after 1 January 2013.
12 May 2011 IASB issues IFRS 12
Effective for annual periods starting on or after 1 January 2013.

Looking for the standard?

Practical guidance on this standard is now on our main IFRS 12 Disclosure of interests in other entities page, with links to eIFRS, the full text standard, eBooks and other resources.