PFRS 12 DISCLOSURE OF INTERESTS IN OTHER ENTITIES

I. NATURE
PFRS 12 prescribe the minimum disclosure requirements for an entity’s interests in
other entities, particularly (a) the nature of, and risks associated with, those interests
and (b) the effects of those interests on the entity’s financial statements.
PFRS 12 applies to entities that have interest in a (an):
a. Subsidiary
b. Joint arrangement (i.e., Joint operation or joint venture);
c. Associate; or
d. Unconsolidated structured entity
PFRS 12 does not apply to an interest in another entity that is accounted for in
accordance with PFRS 9 Financial Instruments.

II. DISCLOSURE
Summary of minimum disclosures under PFRS 12
Significant judgments and assumptions
a. Existence of control, joint control or significant influence over an investee.
b. The type of joint arrangement (i.e., joint operation or joint venture) when the
arrangement has been structured through a separate vehicle.
Investment entity status
a. Significant judgments assumptions that the entity has made in determining
whether the entity is an investment entity.
b. Changes in the entity’s status as an investment entity
c. And entity that becomes an investment entity discloses the ff:
i. The total fair value, as of the date of change of status, of the subsidiaries
that cease to be consolidated;
ii. The total gain or loss and the line item in which that gain or loss is
recognized, if not presented separately.
Interest in subsidiaries
a. The composition of the group
i. Name of subsidiary, its principal place of business, and country of
incorporation.
ii. Interests or voting rights held by non-controlling interest (NCI).
b. The nature and extent of significant restrictions on the entity’s ability to access
assets and settle liabilities of the group.
c. The effects of changes in ownership interest that (i) do not result in a loss of
control, and (ii) result in a loss of control.
d. If a subsidiary uses a different reporting period, the entity discloses that the fact
and the reason thereof.
Interests in joint arrangements and associates
 a. Name of the joint arrangement or associate, its principal place of business, and
country of incorporation
b. Nature of the entity’s relationship with the joint arrangement or associate
c. Ownership interest, participating share, or voting rights held by the entity.
d. Measurement of the investment (i.e., equity method or fair value).
e. If the equity method is used, the entity shall disclosed the fair value of the
investment, if there is a quoted market price for the investment.
f. Dividends received from the joint venture or associate.
g. Summarized financial information about the joint venture or associate.
h. For a material joint venture, the entity discloses the amounts.
i. The entity discloses in aggregate and separately for all investments in joint
ventures and associates that are not individually material.
j. Nature and extent of any significant restrictions on the ability of joint ventures or
associates to transfer funds to the entity in the form of cash dividends, or to
repay loans or advances made by the entity.
k. If a joint venture or associates uses a different reporting period, the entity
discloses that fact and the reason thereof.
l. Unrecognized share of losses of a joint venture or associate.
m. Commitments relating to joint ventures.
n. Contingent liabilities related to joint ventures and associates, unless the
probability of loss is remote.
Interests in unconsolidated structured entities
a. Qualitative and quantitative information about the interest in an unconsolidated
structured entity, including the nature, purpose, size and activities of the
structured entity and how the structured entity is financed.
b. Summary in a tabular format unless another format is more appropriate.
c. If during the reporting period the entity has, without having a contractual
obligation to do so , provided financial or other support to an unconsolidated
structured entity, the entity discloses:
i. The type and amount of support provided, including situations in which the
entity assisted the structured entity in obtaining financial support
ii. The reasons for providing the support.
d. Any current intentions to provide financial or other support to an unconsolidated
structured entity, including intentions to assist the structured entity in obtaining
financial support.