Document ID: chunk:federal_register_of_legislation:F2021C00954:body:0:p13
Version: federal_register_of_legislation:F2021C00954
Segment Type: other
Provision Reference: 
Character Range: 32446–35353

as the other parts of the Standard.
B1 The examples in this appendix portray hypothetical situations. Although some aspects of the examples may be present in actual fact patterns, all relevant facts and circumstances of a particular fact pattern would need to be evaluated when applying AASB 12.

Aggregation (paragraph 4)
B2 An entity shall decide, in the light of its circumstances, how much detail it provides to satisfy the information needs of users, how much emphasis it places on different aspects of the requirements and how it aggregates the information. It is necessary to strike a balance between burdening financial statements with excessive detail that may not assist users of financial statements and obscuring information as a result of too much aggregation.
B3 An entity may aggregate the disclosures required by this Standard for interests in similar entities if aggregation is consistent with the disclosure objective and the requirement in paragraph B4, and does not obscure the information provided. An entity shall disclose how it has aggregated its interests in similar entities.
B4 An entity shall present information separately for interests in:
(a) subsidiaries;
(b) joint ventures;
(c) joint operations;
(d) associates; and
(e) unconsolidated structured entities.
B5 In determining whether to aggregate information, an entity shall consider quantitative and qualitative information about the different risk and return characteristics of each entity it is considering for aggregation and the significance of each such entity to the reporting entity. The entity shall present the disclosures in a manner that clearly explains to users of financial statements the nature and extent of its interests in those other entities.
B6 Examples of aggregation levels within the classes of entities set out in paragraph B4 that might be appropriate are:
(a) nature of activities (eg a research and development entity, a revolving credit card securitisation entity).
(b) industry classification.
(c) geography (eg country or region).

Interests in other entities
B7 An interest in another entity refers to contractual and non-contractual involvement that exposes the reporting entity to variability of returns from the performance of the other entity. Consideration of the purpose and design of the other entity may help the reporting entity when assessing whether it has an interest in that entity and, therefore, whether it is required to provide the disclosures in this Standard. That assessment shall include consideration of the risks that the other entity was designed to create and the risks the other entity was designed to pass on to the reporting entity and other parties.
B8 A reporting entity is typically exposed to variability of returns from the performance of another entity by holding instruments (such as equity or debt instruments issued by the other entity) or having another