Separate Financial Statements – FAQ | IFRS

Separate financial statements

IAS 27 shall be applied in accounting for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.


PREPARATION OF SEPARATE FINANCIAL STATEMENTS


When an entity prepares separate financial statements, it shall account for investments in subsidiaries, joint ventures and associates either:Equity reserves Equity reserves Equity reserves

  1. at cost; or
  2. in accordance with IFRS 9 Financial Instruments (using the equity method).

The entity shall apply the same accounting for each category of investments. Investments accounted for at cost shall be accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale (or included in a disposal group that is classified as held for sale). The measurement of investments accounted for in accordance with IFRS 9 is not changed in such circumstances.

An entity shall recognise a dividend from a subsidiary, joint venture or associate in profit or loss in its separate financial statements when its right to receive the dividend is established.

Separate financial statements 2


Disclosures IAS 27 Separate financial statements

IFRS

Disclosure requirements IAS 27 Separate financial statements

IAS 27 16

IAS 27 Separate financial statements

IAS 27 Separate financial statements

IAS 27 Separate financial statements

When a parent, in accordance with paragraph 4(a) of IFRS 10, elects not to prepare consolidated financial statements and instead prepares separate financial statements, it shall disclose in those separate financial statements:

  1. the fact that the financial statements are separate financial statements; that the exemption from consolidation has been used; the name and principal place of business (and country of incorporation, if different) of the entity whose consolidated financial statements that comply with International Financial Reporting Standards have been produced for public use; and the address where those consolidated financial statements are obtainable.
  2. a list of significant investments in subsidiaries, joint ventures, and associates, including:
    1. the name of those investees.
    2. the principal place of business (and country of incorporation, if different) of those investees.
    3. its proportion of the ownership interest (and its proportion of the voting rights, if different) held in those investees.
  3. a description of the method used to account for the investments listed under (b).
IAS 27 16A

When an investment entity that is a parent (other than a parent covered by paragraph 16) prepares, in accordance with paragraph 8A, separate financial statements as its only financial statements, it shall disclose that fact. The investment entity shall also present the disclosures relating to investment entities required by IFRS 12 Disclosure of Interests in Other Entities.

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