About
IAS 27 prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity elects, or is required by local regulations, to present separate financial statements.
Separate financial statements are those presented in addition to consolidated financial statements.
Separate financial statements could be those of a parent or of a subsidiary by itself. In separate financial statements, an investor accounts for investments in subsidiaries, joint ventures and associates either at cost, or in accordance with IFRS 9, or using the equity method as described in IAS 28.
What you should know
- Know and apply the definitions related to separate financial statements.
- Determine when separate financial statements are prepared.
- Account for investments in subsidiaries, joint ventures and associates in separate financial statements.
- Apply the cost method, IFRS 9 method or equity method, where applicable.
- Account for dividends received from subsidiaries, associates and joint ventures.
- Present and disclose investments in separate financial statements.