Last reviewed: July 2026.
IFRS 12 requires disclosures that enable users to evaluate the nature and risks of interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities, and the effects of those interests on financial position, performance and cash flows.
Group disclosures should explain control judgements, material non-controlling interests, restrictions, risks and changes in ownership rather than repeat the consolidation numbers.
IFRS 12 disclosure objectives
| Objective | Information users need |
|---|---|
| Nature of interests | Ownership, control, joint control or significant influence |
| Risks | Restrictions, guarantees, structured entities and support arrangements |
| Financial effects | Carrying amounts, profit, cash flows and NCI information |
| Judgements | Why control or another relationship exists or does not exist |
| Changes | Acquisitions, disposals and ownership changes |
Significant control judgements
Disclose significant judgements and assumptions used to determine control, joint control, significant influence or investment-entity status. Voting percentages alone may not explain the conclusion.
Subsidiary information
Provide information about the composition of the group and material interests. Users should understand which entities are controlled and how the group structure affects reporting.
Material non-controlling interests
For subsidiaries with material NCI, disclosures can include the subsidiary's name, principal place of business, ownership percentages, profit allocated to NCI, accumulated NCI and summarised financial information.
Review the non-controlling interests guide.
Summarised financial information
Summarised information should help users understand the interest NCI has in group activities and cash flows. It normally includes assets, liabilities, profit or loss and cash-flow information before intragroup eliminations, with appropriate adjustments.
Restrictions within the group
Disclose significant restrictions on the parent's ability to access or use group assets and settle liabilities. Examples include regulatory capital, exchange controls, debt covenants and minority-protection rights.
Protective rights and control
Rights held by lenders or NCI may be protective rather than substantive. When the distinction is significant to the control conclusion, explain the judgement.
Changes in ownership without loss of control
Disclose the effects of ownership changes that do not result in loss of control on equity attributable to parent owners. These are equity transactions rather than new business combinations.
Loss of control
When control is lost, explain material gains or losses and any portion attributable to remeasuring a retained investment. The accounting should reconcile with the disposal and retained-interest records.
Consolidated structured entities
Disclose contractual arrangements that could require the group to provide financial support to consolidated structured entities, including events that could expose the entity to loss.
Unconsolidated structured entities
Explain the nature, purpose, size and activities of unconsolidated structured entities, plus the carrying amounts and maximum exposure to loss arising from interests.
Joint arrangements and associates
IFRS 12 also requires disclosures about material joint ventures and associates, commitments, contingent liabilities and summarised financial information. Do not restrict the checklist to subsidiaries.
Investment entities
Qualifying investment entities generally measure specified subsidiaries at fair value through profit or loss. They provide disclosures explaining investment-entity status and interests not consolidated.
Parent-only financial statements
Separate financial statements show investments under IAS 27, but group disclosures address the consolidated economic entity. Avoid mixing carrying amounts from separate and consolidated statements.
Connection to consolidation
IFRS 12 does not determine which entities are consolidated; IFRS 10 provides the control requirements. The disclosures explain the resulting interests and judgements.
Use the IFRS 10 group accounts guide.
Goodwill and acquisition information
IFRS 3 disclosures address acquisitions, consideration, identifiable net assets and goodwill. Group notes should remain consistent across IFRS 3, IFRS 10 and IFRS 12.
Review the goodwill accounting guide and pre-acquisition profit guide.
IFRS 19 consideration
IFRS 19 is effective for annual periods beginning on or after 1 January 2027, with earlier application permitted. Eligible subsidiaries can apply reduced disclosures in their own financial statements, but the parent still applies the requirements relevant to its consolidated statements.
Materiality and aggregation
Aggregate information with similar risk characteristics, but disclose individually material subsidiaries or structured entities. Excessive aggregation can hide restrictions and NCI exposure.
Commitments and contingent liabilities
Disclose material commitments relating to joint ventures and specified contingent liabilities associated with interests in other entities. Reconcile these amounts with contract, legal and treasury records.
Financial support provided
When the group provides financial or other support to a structured entity, explain the type and amount of support and the reasons. Also disclose current intentions to provide support when required.
Disposals and held-for-sale interests
Changes in group structure can affect IFRS 12 information before and after loss of control. Align disclosures with IFRS 5 presentation, disposal accounting and comparative information where applicable.
Tax and regulatory restrictions
Restrictions can arise from tax, banking, insurance, exchange-control or ring-fencing rules. Explain how they limit dividend payments, loans, guarantees or transfers of cash and assets.
Disclosure preparation controls
- maintain a complete legal-entity and ownership register;
- document control judgements;
- identify material NCI and summarised information;
- obtain restrictions and guarantee data;
- reconcile ownership changes to equity;
- review structured-entity exposures;
- cross-check IFRS 3, IFRS 10 and IFRS 12 notes.
Common mistakes
- disclosing only a list of subsidiaries;
- omitting significant control judgements;
- aggregating all NCI information;
- failing to disclose cash-transfer restrictions;
- ignoring unconsolidated structured entities;
- mixing separate and consolidated carrying amounts;
- assuming IFRS 19 removes parent group disclosures.
Key takeaway
IFRS 12 disclosures explain who is in the group, why, what risks and restrictions exist, and how outside ownership affects the financial statements. Start from the disclosure objectives, not a generic checklist.
Official references: IFRS 12 Disclosure of Interests in Other Entities, IFRS 12 supporting material, and IFRS 19 Subsidiaries without Public Accountability: Disclosures.