Need to Know: IFRS 10 - Consolidated Financial ... - BDO Canada

IFRS 10 Consolidated Financial Statements39Nature of interestsAn entity is required to disclose qualitative and quantitative information about its interests in unconsolidatedstructured entities. This includes, but is not limited to, the following information (IFRS 12.26):––Nature––Purpose––Size––Activities––How the structured entity is financed.An entity is required to classify its sponsoring activities into relevant categories (IFRS 12.28).Nature of riskAn entity is required to disclose in tabular format, unless another format is more appropriate, a summary of(IFRS 12.29):––The carrying amounts of the assets and liabilities recognised in its financial statements relating to its interests inunconsolidated structured entities––The line items in the statement of financial position in which those assets and liabilities are recognised––The amount that best represents the entity’s maximum exposure to loss from its interests in unconsolidatedstructured entities––How the maximum exposure to loss is determined. If an entity cannot quantify its maximum exposure to loss fromits interests in unconsolidated structured entities it is required to disclose that fact and the reasons––A comparison of the carrying amounts of the assets and liabilities of the entity that relate to its interests inunconsolidated structured entities and the entity’s maximum exposure to loss from those entities.If an entity has sponsored an unconsolidated structured entity for which it does not provide information listed in theprevious paragraph (as required by IFRS 12.29) e.g. because it does not have an interest in the entity at the reportingdate, the entity is required to disclose (IFRS 12.27):––How it has determined which structured entities it has sponsored––Income from those structured entities during the reporting period, including a description of the types of incomepresented––The carrying amount (at the time of transfer) of all assets transferred to those structured entities during thereporting period.If during the reporting period an entity has, without having a contractual obligation to do so, provided financial orother support to an unconsolidated structured entity in which it previously had or currently has an interest (e.g.purchasing assets of or instruments issued by the structured entity), the entity is required to disclose:––The type and amount of support provided, including situations in which the entity assisted the structured entity inobtaining financial support––The reasons for providing the support.Disclosure is also required of any current intentions to provide financial or other support, including intentions toassist in obtaining financial support (IFRS 12.31).