Presentation

How can investors have their say on the usefulness of financial disclosures related to group companies – Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12

05.05.2021
Webinar

This webinar will discuss financial reporting issues relevant to companies in several sectors (incl. oil & gas, real estate, banking). Analysts who frequently use information about joint ventures (JVs) and associates when analysing a company’s Enterprise Value or Sum of the Parts valuation may be interested in sharing their views about the disclosures required under the IFRS Standards that deal with consolidation and joint arrangements.

In this webinar, Martin Edelmann, IASB Member, and Zhen Xu, IASB Technical Staff, will provide a quick recap of the 3 standards (all three have been effective since 1.1.2013):

  • IFRS 10 Consolidated Financial Statements identifies control as the single basis for consolidation and establishes principles for preparing consolidated financial statements.
  • IFRS 11 Joint Arrangements establishes principles to report interests in joint arrangements and uses rights and obligations as the basis for determining the type of joint arrangement to which an entity is a party.
  • IFRS 12 Disclosure of Interests in Other Entities combines, enhances and replaces the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities.

The webinar will focus predominantly on IFRS 12 Disclosure of Interest in Other Entities, which directly relates to the information that investors care about when analysing group companies. The Board’s objective when developing this Standard was to improve the disclosure of an entity’s interests in other entities to help identify the profit or loss and cash flows available to the entity and determine the value of a current or future investment.

The Board is seeking feedback on whether it has achieved its objective to help users evaluate:

  • the nature of, and risks associated with, its interests in other entities; and
  • the effects of those interests on its financial position, financial performance and cash flows

Martin and Zhen will provide an overview of the matters the Board is examining in the Post-implementation Review while also answering the following:

  • Where can society members learn more about the Board’s consultation?
  • What feedback is the Board specifically looking for from society members?
  • How can society members provide their views on this consultation?