Entity A is required to provide the effects on the equity attributable to owners of the parent of any changes in its ownership interest in Entity B. This disclosure is in accordance with IFRS 12, which requires an entity to disclose information about its interests in subsidiaries, associates, and joint ventures. The sale of a 10% equity share in Entity B would be a change in ownership interest, and therefore, Entity A must disclose the effect this transaction had on the equity attributable to the owners of the parent. The other options listed, such as disclosing the accounting policies of Entity B or the portion of the gain or loss attributable to measuring the 90% relative to the retained investment at its fair value, are not directly related to the requirements of IFRS 12. The profit or loss attributable to the 10% equity share of Entity B that was sold for the last 5 years is historical information and not specifically required by IFRS 12, but it could be part of the overall disclosure of the group's investment in Entity B.
IFRS 12 Disclosure Requirements: Equity Changes in Wholly-Owned Subsidiaries
In January of 20X2, Entity A sold 10% of its equity share of Entity B, a material wholly-owned entity. In accordance with IFRS 12, which of the following disclosures is Entity A required to provide related to its investment in Entity B?
The effects on the equity attributable to owners of the parent of any changes in its ownership interest
The accounting policies of Entity B in its standalone financial statements
The portion of the gain or loss attributable to measuring the 90% relative to the retained investment at its fair value and the line in profit or loss in which the gain or loss is recognized
The profit or loss attributable to the 10% equity share of Entity B that was sold for the last 5 years
