Chapter 5: Disclosure

IFRS 12 includes mandatory disclosures for subsidiaries, joint arrangements, associates, and unconsolidated structured entities. Disclosure should help readers of financial statements to evaluate the nature, risks, and financial effects associated with the entity’s interests in subsidiaries, associates, joint arrangements, and unconsolidated structured entities.

Reporting entities should disclose any additional information that is necessary to meet this objective.

The disclosure requirements can be summarised into the following three categories:

• Significant judgments and assumptions.
• Nature, extent, and financial effect of the investment in a joint arrangement.
• The risks associated with joint ventures.

The disclosure requirements outlined in IFRS 12 do not apply to parties to a joint arrangement that do not share joint control, except where these parties significantly influence the arrangement.