Disclosures Immaterial Associates And Joint Ventures – FAQ | IFRS

Disclosures immaterial associates and joint ventures

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Disclosures immaterial associates and joint ventures – An entity provides the disclosures separately for individually immaterial associates and individually immaterial joint ventures – they are not combined. [IFRS 12 21 (c) and IFRS 12 B16]

Based on IFRS 12 21, IFRS 12 B16, the disclosures are made like in this example from Volkswagen Group Annual Report 2018

Disclosures immaterial associates and joint ventures

[IFRS 12 21 (c) and IFRS 12 B16]

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[IFRS 12 B16]

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[IFRS 12 B16(a)]

[IFRS 12 B16(c)]

[IFRS 12 B16(d)]

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Aggregate information on non-material joint ventures and associates (Vopak N.V. 2018 financial statements, pages 153 and 156)

In this disclosure, Vopak explains that a large part of the operations is conducted using joint ventures and associates, but that none of these interests are individually material. The financial information provided thereafter shows the impact for Vopak, with a distinction drawn between segments in respect of net profit/total comprehensive income and the financial position. Vopak refers to its disclosure of the contingent assets and liabilities (see further below). Disclosures immaterial associates and joint ventures

Vopak AR 2018 Joint Ventures and Associates disclosures

And Note 9.8 Contingent assets and contingent liabilities in respect of joint ventures and associates

The 2018 commitments related primarily to expansion projects in the Asia & Middle East division and RIPET (Canada). The 2017 commitments for joint ventures and associates mainly related to the expansion of PITSB in Pengerang (Malaysia) and RIPET (Canada). Disclosures immaterial associates and joint ventures

In 2017, guarantees and securities provided on behalf of participating interests in joint ventures and associates increased due to a guarantee provided for RIPET (Canada) of EUR 89.3 million, offset by a decrease in guarantees due to the partial repayment of the loan to PT Jakarta Tank Terminal (Indonesia) and the fulfillment of conditions precedent with respect to the loan and exchange rate effects.

The amounts of guarantees and securities can potentially be called within one year. Disclosures immaterial associates and joint ventures

Guarantees and securities included in ratio calculations Disclosures immaterial associates and joint ventures
The notional amount of guarantees and securities provided on behalf of participating interests in joint ventures and associates, which is also included in ratios, decreased from EUR 91.6 million at 31 December 2017 to EUR 86.6 million at 31 December 2018. Of this amount, nil was recognized in the statement of financial position (2017: EUR 0.1 million). Reference is also made to note 5.5.

And an example accounting policy from ASML Holding NV, the Netherlands – FS 2018

Investments in associates

Equity investments, through which we are able to exercise significant influence but do not control, are accounted for using the equity method and presented on our Consolidated Statement of Financial Position within Investments in associates. The difference between the cost of our investment and our proportionate share of the carrying value of the investee’s underlying net assets as of the acquisition date is the basis difference.

The basis difference is allocated to the identifiable assets and liabilities based on their fair value as of the acquisition date (i.e., the date which we obtain significant influence), with the excess costs of the investment over our proportional fair value of the identifiable assets and liabilities being equity method goodwill.

Under the equity method, after initial recognition at cost, our Investments in associates are adjusted for our proportionate share of the profit or loss and other comprehensive income of the investee, recognized on a one-quarter time lag and presented within profit (loss) on investments in associates.

Adjustments will be made for the effects of significant events and transactions occurring in the one-quarter time lag. Our proportionate share of the profit or loss of the investee is adjusted for any differences in accounting principles and policies, basis difference adjustments and intra-entity profits. Receipt of dividends reduces the Investments in associates, which is presented as an operating cash flow based on the nature of the distributions. We remeasure these Investments to fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired.

See also: The IFRS Foundation

Disclosures immaterial associates and joint ventures

Disclosures immaterial associates and joint ventures Disclosures immaterial associates and joint ventures

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