BC30 IAS 27 required disclosures about the nature and extent of significant restrictions on the ability of subsidiaries to transfer funds to the parent. Users of financial statements noted that, in addition to legal requirements, the existence of non‑controlling interests in a subsidiary might restrict the subsidiary's ability to transfer funds to the parent or any of its other subsidiaries. However, the disclosure requirement in IAS 27 regarding significant restrictions did not refer explicitly to non‑controlling interests.
BC31 Accordingly, the Board decided to amend the requirement in IAS 27 to disclose restrictions in order to clarify that the information disclosed should include the nature and extent to which protective rights of non‑controlling interests can restrict the entity's ability to access and use the assets and settle the liabilities of a subsidiary.
BC32 In response to concerns raised by respondents to ED 10 about the extent of the disclosure requirement, the Boar
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