Kaplan Business SchoolACCOUNTING ACCM4300

Where a non-controlling interest exists in a subsidiary, AASB 12 /IFRS 12 Disclosure of Interests in Other Parties requires parent entities to disclose which of the following for each such subsidiary?

I Summarised financial information about each subsidiary.

II The proportion of ownership interests held by non-controlling interests.

III If the subsidiary is not wholly owned, the names of all other members.

IV The country of incorporation of subsidiaries.

Select one:

I, II, III and IV

I, II and IV only

II, III and IV only

I and IV only

Answer:

Statements I, II, and IV only.

Step-by-step explanation

Based on IFRS 12 Disclosure of Interest in Other Entities, where a non-controlling interest exists in a subsidiary, the reporting entity shall disclose the following:

1. The name of the subsidiary 

2. The principal place of business and country of incorporation of the subsidiary 

3. The proportion of ownership interests held by noncontrolling interests.

4. The proportion of voting rights held by non-controlling interests, if different from the proportion of ownership interests held.

5. The profit or loss allocated to non-controlling interests of the subsidiary during the reporting period 

6. Accumulated non-controlling interests of the subsidiary at the end of the reporting period 

7. Summarised financial information about the subsidiary

Numbers 7, 3, and 2 pertains to the items number I, II, and IV above. Nothing was mentioned about disclosing the names of all other members if the subsidiary is not wholly owned.