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

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56 IFRS 10 Consolidated Financial Statements––The terms of contractual arrangements that could require the parent or its subsidiaries to provide financial support toa consolidated structured entity, including events or circumstances that could expose the reporting entity to a loss (e.g.liquidity arrangements or credit rating triggers associated with obligations to purchase assets of the structured entity orprovide financial support) (IFRS 12.14)––A schedule that shows the effects on the equity attributable to owners of the parent of any changes in its ownershipinterest in a subsidiary that do not result in a loss of control (IFRS 12.18)– – Any gain or loss as a result of losing control of a subsidiary during the reporting period and if a portion of the investment isretained the gain or loss as a result of remeasuring the retained interest to its fair value. The line item where the total gainor loss is included (IFRS 12.18).
IFRS 10 Consolidated Financial Statements5710. Appendix10.1. Definitions IFRSs 10, 11 and 12, and IASs 24, 27 and 28Associate(IAS 28(2011))Consolidated financial statements(IFRS 10)Control of an investee(IFRS 10)Decision maker(IFRS 10)Equity method(IAS 28(2011))Group(IFRS 10)Income from a structured entity(IFRS 12)Interest in another entity(IFRS 12)Joint arrangement(IFRS 11)Joint control(IFRS 11)Joint operation(IFRS 11)Joint operator(IFRS 11)An associate is an entity over which the investor has significant influence.The financial statements of a group in which the assets, liabilities, equity,income, expenses and cash flows of the parent and its subsidiaries are presentedas those of a single economic entity.An investor controls an investee when the investor is exposed, or has rights, tovariable returns from its involvement with the investee and has the ability toaffect those returns through its power over the investee.An entity with decision-making rights that is either a principal or an agent forother parties.The equity method is a method of accounting whereby the investment is initiallyrecognised at cost and adjusted thereafter for the post-acquisition change in theinvestor’s share of the investee’s net assets. The investor’s profit or loss includesits share of the investee’s profit or loss and the investor’s other comprehensiveincome includes its share of the investee’s other comprehensive income.A parent and its subsidiaries.Income from a structured entity includes, but is not limited to, recurring andnon-recurring fees, interest, dividends, gains or losses on the remeasurementor derecognition of interests in structured entities and gains or losses from thetransfer of assets and liabilities to the structured entity.An interest in another entity refers to contractual and non-contractualinvolvement that exposes an entity to variability of returns from theperformance of the other entity. An interest in another entity can be evidencedby, but is not limited to, the holding of equity or debt instruments as well asother forms of involvement such as the provision of funding, liquidity support,credit enhancement and guarantees. It includes the means by which an entityhas control or joint control of, or significant influence over, another entity. Anentity does not necessarily have an interest in another entity solely because of atypical customer supplier relationship.An arrangement of which two or more parties have joint control.The contractually agreed sharing of control of an arrangement, which exists onlywhen decisions about the relevant activities require the unanimous consent ofthe parties sharing control.A joint arrangement whereby the parties that have joint control of thearrangement have rights to the assets, and obligations for the liabilities, relatingto the arrangement.A party to a joint operation that has joint control of that joint operation.
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Need to Know: IFRS 10 - Consolidated Financial ... - BDO Canada

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