Include subsidiaries in the financial position note

To include subsidiaries in the financial position note:

  • Click Reports > Options > Setup
  • Switch Placement - Include subsidiaries in the financial position note to On
  • The Interests in subsidiaries note will be hidden and the paragraphs and tables will appear in the Non-current assets - other financial assets note

 

 

Investment types

Each of following investment types have their own disclosure note and accounting treatment (refer to the accounting policies for further explanation):

 

Interests in subsidiaries

  • Controlled by the entity
  • All assets, liabilities, revenue and expenses accounted for in the many lines of the primary statements
  • If another entity owns part of a subsidiary, this is accounted for as a non-controlling interest (share of profit allocated to APPMI and equity share allocated to EQM##)

 

Interests in associates

  • Not controlled by the entity (the entity is the non-controlling interest, the other side of the coin)
  • Equity accounted and the net profit/loss is accounted for as one line item in the P&L (standard allocations are RVRPA, RVRPJ and RVRPT) and the net investment position is accounted for as one line asset item in NAE##

 

Interests in joint ventures

  • Jointly controlled by the entity and other party/parties (not one controlling party)
  • Equity accounted and the net profit/loss is accounted for as one line item in the P&L (standard allocations are RVRPA, RVRPJ and RVRPT) and the net investment position is accounted for as one line asset item in NAE##

 

Interests in joint operations

  • Jointly controlled by the entity and other party/parties (not one controlling party)
  • The entity's share of assets, liabilities, revenue and expenses accounted for in the many lines of the primary statements (and thus no adjustment is needed for other parties share)

 

 

Change number of decimal places

To change the number of decimal places for ownership interest percentages:

  • Click Reports > Options > Rounding
  • Set Interests - Subsidiaries to between 0 and 5 decimal places
  • It is also possible to click the settings icons to the right of the table

 

 

Over disclosure

The non-controlling interests table can be edited to be 5 columns, so it is the same as the interest in subsidiaries table above but includes a principal activities column:

  • Click the table to edit it
  • Turn off the last two columns (turns off the NCI columns)
  • In columns 3 and 4 delete the word 'Parent'

 

 

Technical notes
  • Summarised financial information on subsidiaries with non-controlling interests is required when material to the consolidated entity
  • Disclosure of subsidiaries without non-controlling interests is not directly mandatory, but it is common practice. IAS 24 (13) requires 'relationships between a parent and its subsidiaries shall be disclosed irrespective of whether there have been transactions between them'. When a parent is preparing separate financial statements (which in this illustrated example is not the case), IAS 27 (16)(b) requires a 'list of significant interests in subsidiaries, jointly controlled entities and associates, including the name, the principal place of business (and country of incorporation, if different), proportion of ownership interest and, if different, proportion of voting power held'
  • An alternative to showing subsidiaries with non-controlling interests in a separate table, is to include all subsidiaries in this table and for those subsidiaries that are wholly owned either over-disclose the 'principal activities' or leave this field blank