IAS 27 Consolidated and separate financial statements

Overview

IAS 27 Separate financial statements contain accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. These IAS 27 summary notes are prepared by mindmaplab team and covering IAS 27 investment in subsidiary, consolidated and separate financial statements with examples and IAS 27 disclosure requirements. This is the IAS 27 full text; we have also prepared IAS 27 pdf version download.

IAS Standards

IAS 2 Inventories       

IAS 7 Statements of cash flows

IAS 7 Statement of cash flows  – Revisited

IAS 8 Accounting policies, changes in accounting estimates, and errors

IAS 10 Events after the reporting period       

IAS 12 Income taxes 

IAS 16 Property, plant and equipment          

IAS 17 Leases

IAS 19 Employee benefits     

IAS 20 Accounting for government grants and disclosure of government assistance          

IAS 21 The effects of changes in foreign exchange rates     

IAS 23 Borrowing costs        

IAS 24 Related party disclosures

IAS 27 Consolidated and separate financial statements        

IAS 28 Investments in associates and joint ventures 

IAS 32 Financial instruments: presentation  

IAS 33 Earnings per share

IAS 33 Earnings per share – Revisited          

IAS 36 Impairment of assets 

IAS 37 Provisions, contingent liabilities and contingent assets        

IAS 38 Intangible assets

IAS 40 Investment property

IFRS Standards

IFRS 3 Business combinations    

IFRS 5 Non-current assets held for sale and discontinued operations    

IFRS 7 Financial instruments: disclosures          

IFRS 8 Operating segments         

IFRS 9 Financial instruments      

IFRS 10 Consolidated financial statements        

IFRS 11 Joint arrangements         

IFRS 12 Disclosure of interests in other entities 

IFRS 13 Fair value measurement 

IFRS 15 Revenues from contracts with customers          

IFRS 16 Leases

IAS 17 VS IFRS 16 Lease – Differences

Ratio Analysis

Introduction to IAS 27

IAS 27 contains accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

Separate financial statements – Those presented by an entity in which the entity could elect, subject to the requirements in this standard, to account for its investment in subsidiaries, joint ventures and associates either at cost, in accordance with IFRS 9 or using equity method as described in IAS 28.

Separate financial statements are those presented in addition to consolidated financial statements or in which investments in associates or joint ventures are accounted for using the equity method.

Preparation of separate financial statements

Investments in subsidiaries, joint ventures and associates must be accounted for in separate financial statements, either:

• at cost; or
• in accordance with IFRS 9.
• Using equity method as described in IAS 28

Investments accounted for at cost or using the equity method are accounted for in accordance with IFRS 5 when they are classified as held for sale.

Dividends are recognised in profit or loss in separate financial statements when the right to receive the dividend is established unless the entity elects to use the equity method in this case the dividend are recognised as the reduction form the carrying amount of the investment.

Disclosure

When a parent prepares separate financial statements, it must disclose:

1. the fact that the financial statements are separate financial statements;
2. a list of significant investments in subsidiaries, joint ventures and associates, including: (investees name. principal place of business, proportion of the ownership interest)
3. method used to account for the investments

If a parent is exempt from preparing consolidated financial statements and elects not to do so, and instead prepares separate financial statements, it must disclose:

1. the fact that the financial statements are separate financial statements;
2. that the exemption from consolidation has been used;
3. the name and principal place of business.