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Module 14 - Pas 27 - Separate Fs

PAS 27 outlines the accounting and disclosure requirements for separate financial statements prepared by a parent or investor in a joint venture or associate. It describes two measurement bases allowed in separate financial statements - at cost or in accordance with PFRS 9 Financial Instruments. PAS 27 does not mandate which entities should produce separate financial statements, but applies when an entity elects or is required to present separate financial statements for investments in subsidiaries, joint ventures, and associates.

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81 views11 pages

Module 14 - Pas 27 - Separate Fs

PAS 27 outlines the accounting and disclosure requirements for separate financial statements prepared by a parent or investor in a joint venture or associate. It describes two measurement bases allowed in separate financial statements - at cost or in accordance with PFRS 9 Financial Instruments. PAS 27 does not mandate which entities should produce separate financial statements, but applies when an entity elects or is required to present separate financial statements for investments in subsidiaries, joint ventures, and associates.

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AKIO HIROKI
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PAS 27 Separate FS

Learning Objectives

• Describe the applicability of PAS 27.


• Describe the measurement bases allowed
under PAS 27.

AA PART 1: Zeus Vernon B. Millan


History – IAS 27

• IAS 27 Separate Financial Statements (as amended in 2011) outlines


the accounting and disclosure requirements for 'separate financial
statements', which are financial statements prepared by a parent, or an
investor in a joint venture or associate, where those investments are
accounted for either at cost or in accordance with IAS 39 Financial
Instruments: Recognition and Measurement or IFRS 9 Financial
Instruments. The standard also outlines the accounting requirements
for dividends and contains numerous disclosure requirements.
• IAS 27 was reissued in May 2011 and applies to annual periods
beginning on or after 1 January 2013, superseding IAS 27 Consolidated
and Separate Financial Statements from that date.

Conceptual Framework & Acctg.


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Standards (by: Zeus Vernon B. Millan)
Conceptual Framework & Acctg.
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Standards (by: Zeus Vernon B. Millan)
Conceptual Framework & Acctg.
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Standards (by: Zeus Vernon B. Millan)
Objective

• IAS 27 has the objective of setting standards to be applied in


accounting for investments in subsidiaries, jointly ventures, and
associates when an entity elects, or is required by local regulations,
to present separate (non-consolidated) financial statements.

• Amendments under consideration by the IASB


IFRS 13 — Unit of account
Research project — Common control transactions

Conceptual Framework & Acctg.


6
Standards (by: Zeus Vernon B. Millan)
Scope

• PAS 27 does not mandate which entities should produce


separate financial statements.
• An entity shall apply PAS 27 in accounting for
investments in subsidiaries, joint ventures and
associates when it elects, or is required by local
regulations, to present separate financial
statements.

AA PART 1: Zeus Vernon B. Millan


Separate financial statements

• Separate financial statements are those presented in


addition to consolidated financial statements or in
addition to financial statements in which investments in
associates or joint ventures are accounted for using the
equity method. Separate financial statements need not
be appended to, or accompany, those statements.

AA PART 1: Zeus Vernon B. Millan


Preparation of separate financial statements
Separate financial statements shall be prepared in accordance
with all applicable PFRSs, except as follows:

• Investments in subsidiaries, associates and joint ventures are


accounted for in the separate financial statements either:
1. at cost,
2. in accordance with PFRS 9 Financial Instruments,
3. using the equity method

• The entity shall apply the same accounting for each


category of investments
AA PART 1: Zeus Vernon B. Millan
 QUESTIONS????
 REACTIONS!!!!!

Conceptual Framework & Acctg.


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Standards (by: Zeus Vernon B. Millan)
END
Conceptual Framework & Acctg. Standards (by: Zeus Vernon B. Millan) 11

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