AASB 12 - Disclosure of Interests in Other Entities - August 2011
ScopeScope
Start here
Get a plain-English read of Scope
Turn the raw legal text into a practical explanation grounded in AASB 12 - Disclosure of Interests in Other Entities - August 2011.
Scope
5 This Standard shall be applied by an entity that has an interest in any of the following:
(a) subsidiaries
(b) joint arrangements (ie joint operations or joint ventures)
(c) associates
(d) unconsolidated structured entities.
Aus5.1 Appendix E Australian Implementation Guidance for Not-for-Profit Entities explains and illustrates the definition of ‘structured entity’ from the perspective of not-for-profit entities in the private and public sectors, since the for-profit perspective reflected in the definition does not readily translate to a not-for-profit perspective.
6 This Standard does not apply to:
(a) post-employment benefit plans or other long-term employee benefit plans to which AASB 119 Employee Benefits applies.
(b) an entity’s separate financial statements to which AASB 127 Separate Financial Statements applies. However:
(i) if an entity has interests in unconsolidated structured entities and prepares separate financial statements as its only financial statements, it shall apply the requirements in paragraphs 24–31 when preparing those separate financial statements.
(ii) an investment entity that prepares financial statements in which all of its subsidiaries are measured at fair value through profit or loss in accordance with paragraph 31 of AASB 10 shall present the disclosures relating to investment entities required by this Standard.
(c) an interest held by an entity that participates in, but does not have joint control of, a joint arrangement unless that interest results in significant influence over the arrangement or is an interest in a structured entity.
(d) an interest in another entity that is accounted for in accordance with AASB 9 Financial Instruments. However, an entity shall apply this Standard:
(i) when that interest is an interest in an associate or a joint venture that, in accordance with AASB 128 Investments in Associates and Joint Ventures, is measured at fair value through profit or loss; or
(ii) when that interest is an interest in an unconsolidated structured entity.