In accordance with the "Basic Standards for Accounting Standards for Business Enterprises," the Ministry of Finance issued CAS No. 41 — Disclosure of Interests in Other Entities on 2014/1/27, effective as of 2014/7/1.
1. Overview of Guidelines
This standard specifies the disclosure requirements for an entity's interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities. An interest in another entity refers to rights that enable the entity to participate in the relevant activities of that other entity through contracts or other forms, thereby exposing it to variable returns.
II. Disclosure of Interests in Subsidiaries
Key Disclosures
- • Composition of the Group: Subsidiary name, principal place of business, nature of business, and shareholding percentage
- • Noncontrolling interests in subsidiaries: ownership percentage, current period profit or loss, dividends, and key financial information
- • Significant restrictions on the use of group assets and repayment of debt
- • Information on structured entities included in the consolidation scope
3. Disclosures of Interests in Joint Arrangements and Associates
Significant Joint Ventures/Associates
Disclose the name, principal place of business, nature of relationship, shareholding percentage, accounting treatment method, and key financial information.
Insignificant associates and joint ventures
Disclose the aggregate carrying amounts and the aggregate amounts calculated based on ownership percentages separately for joint ventures and associates.
4. Disclosures Regarding Interests in Structured Entities
- • Nature, purpose, scale, activities, and financing of structured entities
- • Carrying amounts of assets and liabilities related to interests in structured entities
- • Maximum exposure to loss from interests in structured entities and the method for determining such exposure
- • Intent to provide financial support to structured entities
Regulatory Document Attachment
Disclosure of Interests in Other Entities under Accounting Standards for Business Enterprises No. 41 (PDF)