Question

What are unconsolidated structured entities ?
"An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements"
Can anyone give some examples for this definition?

Answer 1

IFRS 12 defines structured entity as an entity that has been designed so that voting or similar rights are not the dominant factor on deciding who controls the entity.

Paragraph B23 of IFRS 12 provides the following examples of structured entities
(a) Securitisation vehicles.
(b) Asset backed financings.
(c) Some investment funds.

The term ‘unconsolidated structured entities’ refers to all structured entities that are not controlled by the reporting entity.