PFRS 12 Part 1 Disclosure of Interests in Other Entities

Question 1

State all content information

What is the objective of PFRS 12?
5
2
1

Answer 1

1) What is the objective of PFRS 12?
2) Explain interest in another entity.
3) What are the four (4) entities in which PFRS 12 applies?
4) Is PFRS 12 applies to financial instruments?
5) What are the two (2) items in the summary of minimum disclosures under PFRS 12 for significant judgments and assumptions?

1) What is investment entity?
2) What are the three (3) items in the summary of minimum disclosures under PFRS 12 for investment entity status?

1) What are the four (4) items in the summary of minimum disclosures under PFRS 12 for interests in subsidiaries?

Question 2

Fill in the blanks

1) What is the — of PFRS —?
2) Explain — in — —.
3) What are the four (4) — in which PFRS 12 —?
4) Is PFRS 12 applies to — —?
5) What are the two (2) items in the summary of minimum disclosures under PFRS 12 for — — and —?

Answer 2

1) What is the objective of PFRS 12?
2) Explain interest in another entity.
3) What are the four (4) entities in which PFRS 12 applies?
4) Is PFRS 12 applies to financial instruments?
5) What are the two (2) items in the summary of minimum disclosures under PFRS 12 for significant judgments and assumptions?

Question 3

Fill in the blanks

1) What is — —?
2) What are the three (3) items in the summary of minimum disclosures under PFRS 12 for — — —?

Answer 3

1) What is investment entity?
2) What are the three (3) items in the summary of minimum disclosures under PFRS 12 for investment entity status?

Question 4

Fill in the blanks

1) What are the four (4) items in the summary of minimum disclosures under PFRS 12 for — in —?

Answer 4

1) What are the four (4) items in the summary of minimum disclosures under PFRS 12 for interests in subsidiaries?

Question 5

What is the objective of PFRS 12?

Answer 5

• The objective of this standard is to 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.

Question 6

What is the objective of PFRS 12?

• The objective of this standard is to — the — — — for an entity’s — in other —, particularly

a. The — of, and — — with, those — and
b. The — of those — on the entity’s — —.

Answer 6

• The objective of this standard is to 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.

Question 7

Explain interest in another entity.

Answer 7

It refers to involvement that exposes an entity to variability of returns from the performance of another entity. It is evidenced by the holding of equity or debt instruments or other form of involvement, such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity obtains control, joint control, or significant influence over another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer-supplier relationship.

Question 8

Explain interest in another entity.

It refers to — that — an entity to — of — from the — of another entity. It is evidenced by the — of — or — instruments or other form of —, such as the — of —, — support, — — and —. It includes the — by which an entity — —, — —, or — — over — entity. An entity does not necessarily have an — in another entity solely because of a — — - — relationship.

Answer 8

It refers to involvement that exposes an entity to variability of returns from the performance of another entity. It is evidenced by the holding of equity or debt instruments or other form of involvement, such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity obtains control, joint control, or significant influence over another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer-supplier relationship.

Question 9

• It refers to involvement that exposes an entity to variability of returns from the performance of another entity. It is evidenced by the holding of equity or debt instruments or other form of involvement, such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity obtains control, joint control, or significant influence over another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer-supplier relationship.

Answer 9

Explain interest in another entity

Question 10

It refers to involvement that exposes an entity to variability of returns from the performance of another entity.

Answer 10

Explain interest in another entity

Question 11

It is evidenced by the holding of equity or debt instruments or other form of involvement, such as the provision of funding, liquidity support, credit enhancement and guarantees.

Answer 11

Explain interest in another entity

Question 12

What are the four (4) entities in which PFRS 12 applies?

Answer 12

PFRS 12 applies to entities that have an interest in a(an):

1) Subsidiary;
2) Joint arrangement (i.e., Joint operation or joint venture);
3) Associate; or
4) Unconsolidated structured entity.

Question 13

What are the four (4) entities in which PFRS 12 applies?

• PFRS 12 applies to — that have an — in a(an):

1) —;
2) — — (i.e., Joint — or joint —);
3) —; or
4) — — —.

Answer 13

• PFRS 12 applies to entities that have an interest in a(an):

1) Subsidiary;
2) Joint arrangement (i.e., Joint operation or joint venture);
3) Associate; or
4) Unconsolidated structured entity.

Question 14

Is PFRS 12 applies to financial instruments?

Answer 14

PFRS 12 does not apply to an interest in another entity that is accounted for in accordance with PFRS 9 Financial Instruments.

Question 15

Is PFRS 12 applies to financial instruments?

• PFRS 12 — — apply to an — in — entity that is — for in — with PFRS — — —.

Answer 15

PFRS 12 does not apply to an interest in another entity that is accounted for in accordance with PFRS 9 Financial Instruments.

Question 16

What are the two (2) items in the summary of minimum disclosures under PFRS 12 for significant judgments and assumptions?

Answer 16

• PFRS 12 requires disclosure of information about significant judgments and assumptions (including changes thereto) that an entity has made in determining the following:

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.

Question 17

What are the two (2) items in the summary of minimum disclosures under PFRS 12 for significant judgments and assumptions?

• PFRS 12 — disclosure of — about — — and — (including — thereto) that an entity has — in — the following:

a. — of —, joint —, or significant — over an —.
b. the — of joint — (i.e., joint — or joint —) when the — has been — through a — —.

Answer 17

• PFRS 12 requires disclosure of information about significant judgments and assumptions (including changes thereto) that an entity has made in determining the following:

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.

Question 18

What is investment entity?

Answer 18

• Investment entity – is “an entity that:

a. obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services;

b. commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and

c. measures and evaluates the performance of substantially all of its investments on a fair value basis.”

Question 19

What is investment entity?

• Investment entity – is “an entity that:

a. obtains — from one or more — for the — of — those — with — — —;

b. — to its investor(s) that its business purpose is to — — — for — from capital —, investment —, or —; and

c. — and — the performance of substantially all of its — on a — — basis.”

Answer 19

• Investment entity – is “an entity that:

a. obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services;

b. commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and

c. measures and evaluates the performance of substantially all of its investments on a fair value basis.”

Question 20

What are the three (3) items in the summary of minimum disclosures under PFRS 12 for investment entity status?

Answer 20

• PFRS 12 requires the following disclosures for an investment entity:

1) Significant judgments and assumptions that the entity has made in determining whether the entity is an investment entity.

2) Changes in the entity’s status as an investment entity (i.e., becoming or ceasing as an investment entity).

3) An entity that becomes an investment entity discloses the following:

a. the total fair value, as of the date of change of status, of the subsidiaries that cease to be consolidated;

b. the total gain or loss and the line item in which that gain or loss is recognized, if not presented separately.

Question 21

What are the three (3) items in the summary of minimum disclosures under PFRS 12 for investment entity status?

• PFRS 12 — the following disclosures for an — —:

1) — — and — that the entity has — in — whether the entity is an — entity.

2) — in the entity’s — as an investment — (i.e., — or — as an — entity).

3) An entity that becomes an — entity — the following:

a. the — — —, as of the — of — of —, of the — that — to be —;

b. the — — or — and the — — in which that — or — is —, if — — —.

Answer 21

• PFRS 12 requires the following disclosures for an investment entity:

1) Significant judgments and assumptions that the entity has made in determining whether the entity is an investment entity.

2) Changes in the entity’s status as an investment entity (i.e., becoming or ceasing as an investment entity).

3) An entity that becomes an investment entity discloses the following:

a. the total fair value, as of the date of change of status, of the subsidiaries that cease to be consolidated;

b. the total gain or loss and the line item in which that gain or loss is recognized, if not presented separately.

Question 22

What are the four (4) items in the summary of minimum disclosures under PFRS 12 for interests in subsidiaries?

Answer 22

• PFRS 12 requires the following disclosures for an entity’s interests in a subsidiary:

1) The composition of the group.

a. Name of subsidiary, its principal place of business, and country of incorporation.

b. Interests or voting rights held by non-controlling interest (NCI).

c. Profit or loss allocated to NCI during the period.

d. NCI in net assets as of the end of the period.

e. Dividends paid to NCI.

f. Summary of the subsidiary’s assets, liabilities, profit or loss and cash flows.

2) The nature and extent of significant restrictions on the entity’s ability to access assets and settle liabilities of the group.

3) The effects of changes in ownership interest that:

a. do not result in a loss of control; and

b. result in a loss of control.

4) If a subsidiary uses a different reporting period, the entity discloses that fact and the reason thereof.

Question 23

What are the four (4) items in the summary of minimum disclosures under PFRS 12 for interests in subsidiaries?

• PFRS 12 — the following — for an entity’s — in a —:

1) The — of the —.

a. — of —, its principal — of —, and — of —.

b. — or — — held by — — (—).

c. — or — — to — — the —.

d. — in — — as of the — of the —.

e. — — to —.

f. — of the subsidiary’s —, —, — or — and — —.

2) The — and — of — — on the entity’s ability to — — and — — of the group.

3) The — of — in — — that:

a. — — result in a — of —; and

b. — in a — of —.

4) If a subsidiary uses a — — —, the entity discloses that— and the — thereof.

Answer 23

• PFRS 12 requires the following disclosures for an entity’s interests in a subsidiary:

1) The composition of the group.

a. Name of subsidiary, its principal place of business, and country of incorporation.

b. Interests or voting rights held by non-controlling interest (NCI).

c. Profit or loss allocated to NCI during the period.

d. NCI in net assets as of the end of the period.

e. Dividends paid to NCI.

f. Summary of the subsidiary’s assets, liabilities, profit or loss and cash flows.

2) The nature and extent of significant restrictions on the entity’s ability to access assets and settle liabilities of the group.

3) The effects of changes in ownership interest that:

a. do not result in a loss of control; and

b. result in a loss of control.

4) If a subsidiary uses a different reporting period, the entity discloses that fact and the reason thereof.