AASB 12 - Disclosure of Interests in Other Entities - August 2011
The nature and extent of significant resThe nature and extent of significant restrictions
Start here
Get a plain-English read of The nature and extent of significant res
Turn the raw legal text into a practical explanation grounded in AASB 12 - Disclosure of Interests in Other Entities - August 2011.
The nature and extent of significant restrictions
13 An entity shall disclose:
(a) significant restrictions (eg statutory, contractual and regulatory restrictions) on its ability to access or use the assets and settle the liabilities of the group, such as:
(i) those that restrict the ability of a parent or its subsidiaries to transfer cash or other assets to (or from) other entities within the group.
(ii) guarantees or other requirements that may restrict dividends and other capital distributions being paid, or loans and advances being made or repaid, to (or from) other entities within the group.
(b) the nature and extent to which protective rights of non-controlling interests can significantly restrict the entity’s ability to access or use the assets and settle the liabilities of the group (such as when a parent is obliged to settle liabilities of a subsidiary before settling its own liabilities, or approval of non-controlling interests is required either to access the assets or to settle the liabilities of a subsidiary).
(c) the carrying amounts in the consolidated financial statements of the assets and liabilities to which those restrictions apply.