Indian Accounting Standard (Ind AS) 112, Disclosure of Interest in Other Entities, Important Material
Ind AS 112: Disclosure of Interests in Other Entities
Ind AS-112 is related to the disclosures only and there is no principal laid down for measurement, recognition and presentation of investment made in other entities.
The disclosure requirements in this Standard are intended to improve transparency as to the judgments made in deciding whether or not to consolidate and the financial impact if management decides a different conclusion.
To disclose information that enables users of its financial statements to evaluate:
(a) the nature of, and risks associated with, its interests in other entities; and
(b) the effects of those interests on its financial position, financial performance and cash flows.
For the purpose of meeting the above stated objective, an entity shall disclose:
(a) the significant judgements and assumptions it has made in determining:
(i) the nature of its interest in another entity or arrangement;
(ii) the type of joint arrangement in which it has an interest;
(iii) that it meets the definition of an investment entity, if applicable; and
(b) information about its interests in:
(ii) arrangements and associates; and
(iii) structured entities that are not controlled by the entity (unconsolidated structured entities).
This Ind AS shall be applied by an entity that has an interest in any of the following:
(b) joint arrangements (i.e. joint operations or joint ventures)
(d) unconsolidated structured entities.
This Ind AS does not apply to:
(a) post-employment benefit plans or other long-term employee benefit plans to which Ind AS 19, Employee Benefits, applies.
(b) an entity’s separate financial statements to which Ind AS 27, Separate Financial Statements, applies. However, 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.
(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 Ind AS 109, Financial Instruments. However, an entity shall apply this Ind AS:
(i) when that interest is an interest in an associate or a joint venture that, in accordance with Ind AS 28, 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.