PFRS 10

Consolidated Financial Statements

The objective of PFRS 10 is to establish principles for the presentation and preparation of consolidated
financial statements when an entity controls one or more other entities. The Standard requires a parent
entity, which controls one or more other entities, to present consolidated financial statements. It
defines the principle of control, and establishes control as the basis for consolidation and set out how to
apply the principle of control to identify whether an investor controls an investee and therefore must
consolidate the investee. It also sets out the accounting requirements for the preparation of
consolidated financial statements. The standard defines an investment entity and sets out an exception
to consolidating particular subsidiaries of an investment entity.

PFRS 11

Joint Arrangements

PFRS 11 Joint Arrangements outlines the accounting by entities that jointly control an arrangement.
Joint control involves the contractually agreed sharing of control and arrangements subject to joint
control are classified as either a joint venture (representing a share of net assets and equity accounted)
or a joint operation (representing rights to assets and obligations for liabilities, accounted for
accordingly).The core principle of PFRS 11 is that a party to a joint arrangement determines the type of
joint arrangement in which it is involved by assessing its rights and obligations and accounts for those
rights and obligations in accordance with that type of joint arrangement. The new standard is applicable
to annual periods beginning on or after January 1, 2013. Earlier application is permitted.There are no
disclosures specified in PFRS 11. Instead, PFRS 12 Disclosure of Interests in Other Entities outlines the
disclosures required.

PFRS 12

Disclosure of Interests in Other Entities

The objective of PFRS 12 is to require the disclosure of information that enables users of financial
statements to evaluate the nature of, and risks associated with, its interests in other entities the effects
of those interests on its financial position, financial performance and cash flows. Where the disclosures
required by PFRS 12, together with the disclosures required by other PFRSs, do not meet the above
objective, an entity is required to disclose whatever additional information is necessary to meet the
objective. PFRS 12 is required to be applied by an entity that has an interest in either subsidiaries, joint
arrangements (joint operations or joint ventures) associate, or unconsolidated structured entities.
Annual Improvements toPFRS Standards 2014–2016 Cycle clarified that the disclosures required in PFRS
12 (with the exception of B10-B16) also apply to interests held for sale and discontinued operations in
accordance with PFRS 5. PFRS 12 does not apply to certain employee benefit plans, separate financial
statements to which PAS 27 Separate Financial Statements applies (except in relation to unconsolidated
structured entities and investment entities in some cases), certain interests in joint ventures held by an
entity that does not share in joint control, and the majority of interests in another entity accounted for
in accordance with PFRS 9 Financial Instruments. An investment entity that prepares financial
statements in which all of its subsidiaries are measured at fair value through profit or loss presents the
disclosures relating to investment entities required by PFRS 12.

PFRS 13

Fair Value Measurement

Objectives of PFRS 13 are to define fair value, set out in a single PFRS a framework for measuring fair
value, and require disclosures about fair value measurements.PFRS 13 applies when another PFRS
requires or permits fair value measurements or disclosures about fair value measurements (and
measurements, such as fair value less costs to sell, based on fair value or disclosures about those
measurements), except for share-based payment transactions within the scope of PFRS 2 Share-based
Payment, leasing transactions within the scope of PAS 17 Leases, and measurements that have some
similarities to fair value but that are not fair value, such as net realisable value in PAS 2 Inventories or
value in use in PAS 36 Impairment of Assets. Additional exemptions apply to the disclosures required by
PFRS 13. The Standard defines fair value on the basis of an 'exit price' notion and uses a 'fair value
hierarchy', which results in a market-based, rather than entity-specific, measurement. It applies to
annual periods beginning on or after 1 January 2013.

Source: www.ias.com