BC44 In response to requests from users of financial statements, the Board proposed in ED 9 that an entity should disclose a list and description of investments in significant joint ventures and associates. Respondents to ED 9 generally welcomed the proposal. The Board decided to carry the proposals forward into IFRS 12 with some modifications as described in paragraphs BC45 and BC46.

BC45 The Board decided to require the information for joint arrangements and associates that are material to the reporting entity rather than for significant joint arrangements and associates. The Conceptual Framework for Financial Reporting (Conceptual Framework) [References to the Conceptual Framework in this Basis for Conclusions are to the Conceptual Framework for Financial Reporting, issued in 2010 and in effect when the Standard was developed.] defines materiality whereas the term 'significant' is undefined and can be interpreted differently. Consequently, the Board decided to replace 'significant' with 'material', which is also used in IFRS 3. The Board noted that materiality should be assessed in relation to an entity's consolidated financial statements or other primary financial statements in which joint ventures and associates are accounted for using the equity method.

BC46 In addition, the Board noted that ED 9 unintentionally changed the application of the requirement in IAS 31 to provide a description of interests in all joint arrangements to interests in joint ventures only. As such, the Board modified the requirement so that it would continue to be required for all joint arrangements that are material to an entity.