IFRS 12, ‘Disclosure of interests in other entities’, contains disclosure requirements for investment entities with controlled subsidiaries.

The intention of the IFRS 12 disclosures is to give relevant information to users to help them understand: significant judgements and assumptions made in making the investment entity determination; reasons for concluding why an entity is considered to be an investment entity, even if it does not have one or more of the typical characteristics; and information about unconsolidated subsidiaries and unconsolidated structured entities controlled by the entity.

The required disclosures are set out in IFRS 12.

Are investment entities with no subsidiaries able to use the disclosure exemption in paragraph 21A of IFRS 12 for investments in associates and joint ventures? An investment entity does not have any subsidiaries. However, it does hold investments in associates and joint ventures, which it measures at fair value through profit or loss in accordance with IAS 28. Is the investment entity able to use the disclosure exemption, available to investment entities, from the requirement to provide disclosure of summarised financial information of its associates and joint ventures? Solution Yes, investment entities that do not have any subsidiaries and which measure investments in associates and joint ventures at fair value can claim the exemption, in paragraph 21A of IFRS 12, from disclosing summarised financial information for those investments. The definition of an investment entity in IFRS 10 does not require that it has controlled investments, and the disclosure exemption in IFRS 12 would therefore be available.

Disclosures are also required by any investment entity parent that prepares separate financial statements as its only financial statements.