Q1: What is IFRS 12?
IFRS 12 is an International Financial Reporting Standard that provides guidance on disclosure requirements for entities that have interests in other entities, such as subsidiaries, associates, joint arrangements, and structured entities.
Q2: What types of entities are covered by IFRS 12?
IFRS 12 applies to all types of entities that have interests in other entities, including subsidiaries, associates, joint arrangements, and structured entities.
Q3: What are the disclosure requirements under IFRS 12?
The disclosure requirements under IFRS 12 include information about the nature of an entity's interests in other entities, the risks and uncertainties associated with those interests, and the financial effects of those interests on the entity's financial position, financial performance, and cash flows.
Q4: What is the purpose of the disclosure requirements under IFRS 12?
The purpose of the disclosure requirements under IFRS 12 is to provide users of financial statements with information that is relevant, reliable, and understandable about an entity's interests in other entities, and the potential risks and uncertainties associated with those interests.
Q5: What are the criteria for determining whether an entity is a structured entity under IFRS 12?
An entity is considered a structured entity under IFRS 12 if it meets the following criteria: (1) the entity has been designed so that voting or similar rights are not the dominant factor in determining who controls the entity; (2) the entity's activities are mainly for the benefit of a specific party or parties; and (3) the entity's activities are not intended to generate a profit or loss.
Q6: What are the disclosure requirements for structured entities under IFRS 12?
The disclosure requirements for structured entities under IFRS 12 include information about the nature and purpose of the entity, the risks and uncertainties associated with the entity, and the financial effects of the entity on the reporting entity's financial position, financial performance, and cash flows.
Q7: Who is responsible for ensuring compliance with IFRS 12?
The entity's management is responsible for ensuring compliance with the disclosure requirements of IFRS 12. Auditors are responsible for auditing the entity's compliance with those requirements and reporting on any identified deficiencies.
Q8: Are there any exceptions or exemptions to the requirements of IFRS 12?
IFRS 12 does not provide any exceptions or exemptions to its requirements. However, there may be specific industry or jurisdictional requirements that must be considered in determining the appropriate disclosure requirements for entities that have interests in other entities.