(Summary) Ind AS 27

Separate Financial Statements

Is to prescribe the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

This Standard shall be applied in accounting for investments in subsidiaries, joint ventures and associates when an entity elects, or is required by law, to present separate financial statements.

  1.  Consolidated Financial Statements
  2. Separate Financial Statements

Consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.

Separate financial statements are those presented by a parent (i.e an investor with control of a subsidiary) or an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost or in accordance with Ind AS 109, Financial Instruments.

  • Separate financial statements shall be prepared in accordance with all applicable Ind AS.
  • When an entity prepares separate financial statements, it shall account for investments in subsidiaries, joint ventures and associates either:
  1. At cost, or
  2. In accordance with Ind AS 109.
  • If an entity elects to measure its investments in associates or joint ventures at fair value through profit or loss, it shall also account for those investments in the same way in its separate financial statements.
  • An entity shall recognise a dividend from a subsidiary, a joint venture or an associate in profit or loss in its separate financial statements when its right to receive the dividend is established.

An entity shall apply all applicable Ind ASs when providing disclosures in its separate financial statements.

 

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