IAS 27 (2011) Separate Financial Statements: Simplifying Consolidated Accounting
Bilal Ahmad
Fractional CFO for Startups | Financial Modeling to Drive Growth and Profitability | Empowering Founders with Data-Driven Financial Leadership
IAS 27 (2011), titled "Separate Financial Statements," provides guidance on the preparation and presentation of separate financial statements when an entity chooses or is required by law to present them. This standard clarifies the accounting for investments in subsidiaries, joint ventures, and associates when an entity elects, or is required by local regulations, to prepare separate financial statements.
Key points of IAS 27 (2011) include:
- Objective: To standardize accounting practices for entities that prepare separate financial statements.
- Scope: Applicable to entities that have investments in subsidiaries, joint ventures, and associates.
- Accounting for Investments: Investments in subsidiaries, associates, and joint ventures can be accounted for at cost or in accordance with IFRS 9 in these separate statements.
- Separate Financial Statements Defined: These are statements in which an investor presents its investments in subsidiaries, joint ventures, and associates.
- Disclosure: Requires sufficient disclosure for users to understand the financial statements and the impact of the investments.
- Equity Method Not Allowed: In separate financial statements, the equity method of accounting is not permitted.
#IFRS #IAS #FinancialReporting #AccountingStandards #GAAP #IFRSUpdates #AccountingPolicy #CorporateAccounting #FinancialStatements #IASB #AccountingPrinciples #InternationalAccounting #AuditAndAssurance #FinancialDisclosure