Ind AS 112 – Disclosure of Interests in Other Entities: The Complete Guide
Content updated 21 October 2026. Dates, reporting basis and sources are stated beside the revised examples.
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Reviewed by CA Nikhil Gupta · Last reviewed 4 June 2025
📋 Table of Contents
| Structural block | What it covers |
|---|---|
| Objective and scope | Requires disclosure of information that enables 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 and cash flows. |
| Significant judgments | Disclosure of the judgments and assumptions made in determining control, joint control or significant influence, and in classifying a joint arrangement as a joint operation or joint venture — since these judgments directly drive which consolidation/equity method treatment applies. |
| Interests in subsidiaries | Composition of the group, the interest non-controlling interests hold, and — where a subsidiary has material NCI — summarised financial information about that subsidiary; also disclosure of significant restrictions on the parent’s ability to access group assets. |
| Interests in joint arrangements and associates | Nature, extent and financial effects of interests, including summarised financial information for material joint ventures and associates, and the nature of risks associated with them. |
| Unconsolidated structured entities | Nature and extent of interests in structured entities that are not consolidated, including the nature of risks the entity is exposed to from its involvement, even where it has no contractual obligation to provide support. |
| Aggregation | Disclosures may be aggregated for interests in similar entities, but aggregation must not obscure significant information — a balance between conciseness and usefulness. |
1. Overview & objective
Ind AS 112 explains what an entity must disclose about its interests in other entities. It helps a reader understand the relationship, the risks and the effect on the reporting entity's finances. Ind AS 110 assesses control, Ind AS 111 classifies joint arrangements, and Ind AS 28 governs the equity method; Ind AS 112 complements those accounting requirements.
Your two-minute reading checklist
- Identify the reporting parent and the year. A subsidiary's own accounts and its parent's consolidated accounts can show different bases.
- Separate ownership percentages, annual profit and closing NCI balances.
- Read control and joint-control judgements before assuming a majority stake means consolidation.
- Check restrictions, support commitments and maximum exposure to loss, as applicable.
The company examples below use FY 2024–25 reports. They are dated evidence, not current shareholding quotations.
2. Scope & covered interests
| Interest | Accounting starting point | Disclosure focus |
|---|---|---|
| Subsidiary | Control under Ind AS 110 | Group composition, material NCI, restrictions and support risks |
| Joint venture / associate | Ind AS 111 and/or Ind AS 28 | Nature, financial effects, commitments and risks |
| Joint operation | Rights to assets and obligations for liabilities under Ind AS 111 | Nature and extent of the interest and significant classification judgements |
| Unconsolidated structured entity | Control assessment under Ind AS 110; measurement depends on the instrument and applicable standard | Purpose, financing, carrying amounts, maximum exposure and support |
Ind AS 112 generally excludes separate financial statements under Ind AS 27. Paragraph 6(b) contains exceptions: an entity preparing only separate statements must still disclose interests in unconsolidated structured entities under paragraphs 24–31; an investment entity measuring all subsidiaries at fair value must provide the relevant investment-entity disclosures. “Only consolidated accounts” is therefore too broad a scope rule.
3. Subsidiaries: composition, restrictions and ownership changes
Read paragraphs 10–19 with the significant-judgement requirements in paragraphs 7–9. The disclosures should explain the group's composition and how control was determined, including cases where voting power and control do not align.
Restrictions (paragraph 13): explain significant statutory, contractual or regulatory limits on using group assets and settling liabilities. Examples can include dividend or cash-transfer restrictions, guarantees, borrowing covenants and protective rights of NCI. Disclose the relevant carrying amounts. A foreign location or an SPV name alone does not prove a restriction exists.
Ownership changes: paragraph 18 requires a schedule showing the effects on equity attributable to owners of changes that retain control. Paragraph 19 requires the gain/loss from losing control, its retained-investment remeasurement component and where it is recognised. Acquisition-date fair values and business-combination information fall under Ind AS 103 as applicable.
4. Non-controlling interest disclosures
For each subsidiary with NCI material to the reporting entity, paragraph 12 requires its name and principal place of business, NCI ownership/voting proportions, profit allocated to NCI, accumulated NCI and summarised financial information. Paragraphs B10–B11 add dividends paid to NCI and financial information before intercompany eliminations.
Materiality is a judgement: a small percentage in a large subsidiary can still be material. Do not confuse NCI's closing carrying amount with the subsidiary's market capitalisation, the public free float or the current year's NCI profit.
5. Associates & joint ventures
For each material associate or joint venture, disclose the name, nature of the relationship, principal place of business, ownership/voting rights, measurement method and summarised financial information. B12 includes current/non-current assets and liabilities, revenue, continuing/discontinued profit, OCI, total comprehensive income and dividends received.
Additional information for material joint ventures: B13 adds cash, specified financial liabilities, depreciation, interest income/expense and tax. Those extra items are not a blanket requirement for every material associate.
The summary generally shows the investee's figures, adjusted as required for the equity method, rather than just the investor's percentage share. Reconcile it to the investment carrying amount. For individually immaterial interests, disclose the aggregate carrying amount and aggregate share of results, keeping associates and JVs separate. Also consider unrecognised losses, significant restrictions, commitments and contingent liabilities under paragraphs 22–23.
6. Structured entities: assess the contracts
A structured entity is designed so voting rights are not the dominant factor in deciding control. Securitisation vehicles, asset-backed financings and some investment funds can qualify. An ordinary company does not become a structured entity simply because it is called an SPV or has third-party funding.
For consolidated structured entities, paragraphs 14–17 address support arrangements and risks, including non-contractual support. For unconsolidated structured entities, paragraphs 24–31 cover the nature, purpose, size, activities and financing of the entity; recognised assets/liabilities and their balance-sheet lines; maximum exposure to loss and how it was measured; and support given or intended.
Compare the carrying amounts of the reporting entity's recognised interests with its maximum exposure to loss, rather than comparing that exposure with the structured entity's total assets. If maximum exposure cannot be quantified, disclose that fact and why. An unconsolidated interest can still produce recognised financial assets, liabilities or commitments; “off balance sheet” does not mean “nothing recognised”.
7. Investment entities and unconsolidated subsidiaries
An investment entity may measure qualifying investment subsidiaries at fair value under Ind AS 110. Paragraphs 19A–19G of Ind AS 112 require the investment-entity judgement, details of unconsolidated subsidiaries, restrictions, commitments and support as applicable. Do not substitute a general requirement for full subsidiary summaries where these specific disclosures apply.
8. Report-backed Indian examples
Case study 1: Tata Sons — follow the reporting entity (FY 2024–25)
Tata Sons' consolidated report gives a practical example of a subsidiary with material outside ownership. The figures below are from its TCS subsidiary summary, before intragroup eliminations, in Note 57. Amounts are in ₹ crore; balances are at 31 March 2025.
| Disclosure | FY 2024–25 / 31 March 2025 |
|---|---|
| Ownership / non-controlling interest | 71.76% / 28.24% |
| Profit allocated to NCI | 13,709.16 |
| Net assets attributable to NCI | 26,754.74 |
| Dividends to NCI | 12,667.63 |
How to read it: NCI's profit is a year's flow; its net assets are a closing balance. They are different measures. Tata Sons' figures may include consolidation adjustments that differ from TCS's own published subgroup accounts. Use the cited basis consistently instead of multiplying an unrelated TCS profit by a rounded public shareholding.
A majority stake can still be a joint venture. Note 33(c) lists Tata Boeing Aerospace among Tata Advanced Systems' joint ventures: 51% ownership, equity method, and a carrying amount of ₹178.50 crore (FY 2023–24: ₹159.81 crore). The accompanying explanation says agreements give investors substantive rights that prevent unilateral control. This illustrates why voting percentages alone do not establish control.
A second NCI example: the same report's Tata Capital summary shows NCI of 4.96%, net assets attributable to NCI of ₹1,350.84 crore and profit allocated to NCI of ₹183.12 crore. These are identified subsidiary figures; an SPV or securitisation label by itself does not establish whether a vehicle is consolidated.
Keep group boundaries clear: Tata Steel's own FY25 AOC-1 lists Tata BlueScope Steel as a 50% joint venture. That separate reporting relationship must not be presented as a direct Tata Sons investment.
Sources: Tata Sons FY25 report, Note 57, printed pp332–335 (PDF pp336–339) and Note 33(c), printed p288 (PDF p292); Tata Steel FY25 report, AOC-1 Part B, joint-venture entry 22.
Case study 2: Reliance Industries — ownership, NCI and a real FY25 transaction
Reliance Industries' FY25 consolidated statements distinguish the group's totals from ownership of individual subsidiaries. The following balances are at 31 March 2025 and amounts are in ₹ crore.
| Reported fact | Amount / percentage | Where to find it |
|---|---|---|
| RIL group NCI balance | 1,66,426 | Consolidated balance sheet |
| FY25 profit attributable to group NCI | 11,661 | Consolidated profit and loss |
| Jio Platforms voting power held by RIL and/or subsidiaries | 66.43% | Annexure A, entry 96 |
| Reliance Retail Ventures voting power held by RIL and/or subsidiaries | 83.56% | Annexure A, entry 237 |
The ₹1,66,426 crore is total RIL group NCI; it is not Reliance Retail Ventures' NCI alone. A 16.44% outside ownership complement for RRVL is a percentage, not a rupee carrying amount. Outside investors in an unlisted subsidiary also need not be public-market shareholders.
Read the actual group schedule: Annexure A Part A contains 291 numbered subsidiary entries. It carries reporting-date and ceased/liquidated-entity notes, so this schedule count should not be described as 291 currently active, directly owned companies. Jio Platforms is identified there as a subsidiary; Annexure B separately identifies associates and joint ventures, including Balaji Telefilms as an associate with 21.07% ownership.
A documented change in FY25: Note 42 describes the Viacom18/Digital18/Star India scheme effective 14 November 2024. Star India became a 63.16% subsidiary. The reported consideration was ₹44,437 crore, comprising ₹11,500 crore and ₹32,937 crore. The group applied Ind AS 103's reverse-acquisition requirements.
Which standard does what? Ind AS 103 governs the business-combination accounting. Ind AS 112 supplies the relevant interests and risk disclosures: paragraph 14 concerns risks from consolidated structured entities; paragraph 18 covers ownership changes without loss of control; paragraph 19 covers loss of control. Read the disclosure paragraph that corresponds to the transaction being assessed.
Source: RIL FY25 consolidated statements, printed pp194–197 (PDF pp7–8), Note 42 printed p272 (PDF p46), and Annexures A/B (PDF pp46–52).
9. Frequently asked questions
Why disclose restrictions on subsidiary assets?
Consolidation presents a group together, but its cash and assets may be legally or contractually restricted. Paragraph 13 helps readers assess which resources are available to settle group obligations. Use the actual restriction and affected carrying amount; do not infer it solely from the country or industry.
What must be disclosed for a material associate?
B12 requires summarised financial information and dividends received; B14 requires the relevant basis and a reconciliation to the carrying amount. B13's extra cash, financing and expense disclosures apply to material joint ventures.
What is maximum exposure for an unconsolidated structured entity?
It is the amount that best represents the reporting entity's maximum loss exposure from its interest, with the calculation method explained. Paragraph 29 compares it with the reporting entity's recognised assets and liabilities relating to that interest. Explain why if it cannot be quantified.
Standard text: ICAI 2025–26 Ind AS 112 compilation, especially paragraphs 6, 12–19G, 24–31 and B10–B16. Company figures above retain their report year, units and consolidation basis.
Source and review trail
Use the current official instrument, portal or regulator publication before acting.
- Primary category
- Accounting, Audit & Ind AS
- Official starting point
- www.icai.org