IFRS 12 - Disclosure of Interests in Other Entities

IFRS 12 requires extensive disclosures about interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities, so that users can understand risks and the effects on the entity.

IFRS 12 requires detailed disclosures about interests in subsidiaries, joint arrangements, associates, and structured entities, enabling users to understand related risks and financial effects.

- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.

- Example: When preparing year-end reporting, management applies **IFRS 12 - Disclosure of Interests in Other Entities** to determine the correct IFRS treatment and disclosures.

- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.