The IASB discussed the disclosure requirements for consolidated subsidiaries and unconsolidated structured entities. The Board tentatively decided that for subsidiaries with non-controlling interests that are individually material to a reporting entity, the reporting entity should disclose:
- the name;
- the country of incorporation or residence;
- the method of allocating the profits or losses to the non-controlling interest and, if it is different to the proportion of ownership interests, the proportion of voting rights held by the non-controlling interest; and
- summarised financial information.
The Board affirmed that a reporting entity should disclose information that helps users of financial statements to understand the nature of, and changes in, the risks associated with the reporting entity's involvement with structured entities. A reporting entity must provide this disclosure for both contractual and non-contractual involvements that expose the reporting entity to variability of returns of the structured entity.
In addition, the Board tentatively decided that that a reporting entity should be required to disclose for unconsolidated structured entities that the reporting entity has sponsored, but with which the reporting entity has no involvement at the reporting date:
- income in the reporting period from the structured entities that it has sponsored; and
- the carrying amount (at the time of transfer) of the assets transferred to those structured entities during the reporting period.
The reporting entity should present the information in a tabular format, unless another format is more appropriate, and separate the activity into relevant categories (such as by type of structured entity or asset that exposes the reporting entity to different risks). The reporting entity should also explain its policy as to how it determines whether it has sponsored a structured entity.
The Board's tentative decisions complete its deliberation of the responses to ED 10 Consolidated Financial Statements.