Ind AS 112
Active
Disclosure of Interests in Other Entities
Requires disclosures about an entity's interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities, substantially converged with IFRS 12.
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Conceptual Framework Linkage
Identical disclosure philosophy to IFRS 12
Ind AS 112 applies the IDENTICAL objective as IFRS 12 – enabling users to EVALUATE the nature of, and risks associated with, an entity's interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities, and the EFFECTS of those interests on financial position/performance.
HOW IND AS 112 MAPS TO THE FRAMEWORK
Relevance – group structure risks/dependencies are not always apparent from consolidated totals alone – identical to IFRS 12 Interaction with Schedule III – the Companies Act, 2013's Schedule III ALSO requires specific group entity disclosures (e.g. a statement showing net assets/profit-loss share of each entity in a consolidation) – operating ALONGSIDE, not instead of, Ind AS 112's own requirements
This dual disclosure requirement (Ind AS 112 + Schedule III) is a genuinely distinctive INDIAN practical feature, though NOT a substantive divergence in Ind AS 112's own accounting content.
The four disclosure categories – identical to IFRS 12
CategoryFocus
Significant judgementsHow control/joint control/significant influence was determined
SubsidiariesNCI, restrictions, consolidated structured entities
Joint arrangements/associatesNature, extent, financial effects
Unconsolidated structured entitiesNature, extent, risk exposure
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Scope & Applicability
What Ind AS 112 covers
Ind AS 112 applies to entities with interests in subsidiaries, joint arrangements, associates, or unconsolidated structured entities – IDENTICAL scope to IFRS 12.
Key definitions you must know
Structured entity
IDENTICAL definition to IFRS 12 – an entity designed so voting rights are not the dominant factor in control.
Schedule III statement
The Companies Act, 2013-mandated statement disclosing each group entity's share of net assets and profit/loss within a consolidation.
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Significant Judgements in Determining Control/Influence
Identical to IFRS 12
Disclosure of significant judgements/assumptions in determining control, joint control, or significant influence – IDENTICAL to IFRS 12, particularly relevant for de facto control scenarios common in Indian dispersed shareholding structures (see Ind AS 110, Section 4).
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Disclosures for Subsidiaries
Identical to IFRS 12
Composition of the group, NCI's proportion of ownership/voting rights, summarised financial information for MATERIAL NCI, and nature/extent of significant restrictions on group asset access – IDENTICAL to IFRS 12.
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Disclosures for Joint Arrangements & Associates
Identical to IFRS 12
Example 1: Summarised financial information for a material Indian joint venture
An Indian listed company holds a 40% interest in a material joint venture SPV constructing a toll road. The JV's total assets are ₹200 crore, total liabilities ₹120 crore, revenue ₹35 crore, profit ₹8 crore.
Ind AS 112 requires disclosure of the JV's summarised financial information (assets, liabilities, revenue, profit) IN FULL, reconciled to the carrying amount of the equity-accounted investment – an IDENTICAL disclosure requirement to IFRS 12 for an equivalent material joint venture globally.
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Unconsolidated Structured Entities
Identical to IFRS 12
Nature/purpose, size, financing, and MAXIMUM EXPOSURE TO LOSS disclosures for unconsolidated structured entities – IDENTICAL to IFRS 12, relevant for Indian NBFCs' securitisation SPVs where control is NOT established.
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Schedule III Group Disclosure Interaction
A parallel Companies Act requirement
Schedule III mandates a SPECIFIC additional statement in consolidated financial statements, showing each entity's (parent, subsidiaries, associates, joint ventures) SHARE of consolidated net assets and profit/loss – a REQUIREMENT distinct from, but complementary to, Ind AS 112's own detailed narrative and quantitative disclosures. This is a purely PRESENTATIONAL Companies Act requirement layered on top of Ind AS 112, not a substantive divergence from IFRS 12.
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Restrictions and Risks
Identical to IFRS 12
Disclosure of significant restrictions (e.g. regulatory, contractual) on a subsidiary's ability to transfer funds to the parent – IDENTICAL to IFRS 12, relevant for Indian subsidiaries subject to RBI/FEMA (Foreign Exchange Management Act) restrictions on cross-border fund transfers.
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Disclosure Summary
Required disclosures – identical to IFRS 12
Significant judgements in determining control/joint control/significant influence Subsidiary composition, NCI information, restrictions Joint arrangement/associate summarised financial information Unconsolidated structured entity exposure
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Critical Judgments & Estimates
Where management judgement matters most
SIGNIFICANT JUDGEMENTS
Materiality threshold for detailed NCI/JV/associate disclosures Whether an entity is a "structured entity"
SIGNIFICANT ESTIMATES
Maximum exposure to loss from unconsolidated structured entities
FEMA cross-border fund transfer restrictions are a genuinely distinctive Indian consideration under the "restrictions" disclosure requirement, not commonly relevant in many other IFRS 12 jurisdictions.
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Ind AS 112 vs IFRS 12 – Full Comparison
Comprehensive comparison table
FeatureIFRS 12Ind AS 112
Core disclosure objectives/requirementsFour-category structureIDENTICAL
Group entity net asset/profit share statementNo direct global equivalent within IFRS 12 itselfSchedule III of the Companies Act, 2013 mandates a SPECIFIC additional statement, presented alongside Ind AS 112
Fund transfer restrictions contextVaries by jurisdictionFEMA/RBI cross-border restrictions are a common, genuinely Indian-specific example
Ind AS 112's disclosure SUBSTANCE mirrors IFRS 12 closely – the Schedule III statement is an ADDITIONAL Companies Act presentation requirement, not a modification of Ind AS 112 itself.
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Statement Mapping
Where every Ind AS 112 disclosure lands
Disclosure itemLocationNotes
Significant judgements, subsidiary/JV/associate disclosuresNotesIdentical to IFRS 12
Schedule III net asset/profit share statementConsolidated FS AnnexureCompanies Act-specific presentation, alongside Ind AS 112 notes
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Related Standards
Cross-reference map
StandardConnection
IFRS 12The global counterpart standard, near-identically converged
Ind AS 110 / 111 / 28Supply the underlying control/joint control/significant influence concepts Ind AS 112 discloses
Schedule III (Companies Act, 2013)Mandates the additional group entity net asset/profit share statement
Quick-reference glossary
FEMA
Foreign Exchange Management Act – governs cross-border fund transfer restrictions relevant to Ind AS 112's restrictions disclosure.
Maximum exposure to loss
The disclosure metric for unconsolidated structured entities, identical to IFRS 12.
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Glossary
Structured entity
IDENTICAL definition to IFRS 12 – an entity designed so voting rights are not the dominant factor in control.
Schedule III statement
The Companies Act, 2013-mandated statement disclosing each group entity's share of net assets and profit/loss within a consolidation.
FEMA
Foreign Exchange Management Act – governs cross-border fund transfer restrictions relevant to Ind AS 112's restrictions disclosure.
Maximum exposure to loss
The disclosure metric for unconsolidated structured entities, identical to IFRS 12.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows