PAMANTASAN NG CABUYAO
COLLEGE OF BUSINESS, ACCOUNTANCY & ADMINISTRATION
PAS 27 Separate Financial Statements
The objective of this Standard 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 local regulations, to present separate financial statements.
This Standard does not mandate which entities produce separate financial statements. It applies when an entity
prepares separate financial statements that comply with International Financial Reporting Standards.
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 an entity in which the entity could elect, subject to the
requirements in this Standard, to account for its investments in subsidiaries, joint ventures and associates either at
cost, in accordance with PFRS 9 Financial Instruments, or using the equity method as described in PAS 28
Investments in Associates and Joint Ventures.
Preparation of separate financial statements
When an entity prepares separate financial statements, it shall account for investments in subsidiaries, joint ventures
and associates either:
a) at cost;
b) in accordance with PFRS 9; or
c) using the equity method as described in PAS 28.
The entity shall apply the same accounting for each category of investments. Investments accounted for at cost or
using the equity method shall be accounted for in accordance with PFRS 5 Non-current Assets Held for Sale and
Discontinued Operations when they are classified as held for sale or for distribution (or included in a disposal group
that is classified as held for sale or for distribution). The measurement of investments accounted for in accordance
with IFRS 9 is not changed in such circumstances.
Dividends from a subsidiary, a joint venture or an associate are recognized in the separate financial statements of
an entity when the entity’s right to receive the dividend is established. The dividend is recognized in profit or loss
unless the entity elects to use the equity method, in which case the dividend is recognized as a reduction from the
carrying amount of the investment.
Disclosure
An entity shall apply all applicable IFRSs when providing disclosures in its separate financial statements.
When a parent, elects not to prepare consolidated financial statements and instead prepares separate financial
statements, it shall disclose in those separate financial statements:
a) the fact that the financial statements are separate financial statements; that the exemption from
consolidation has been used; the name and principal place of business (and country of incorporation, if
different) of the entity whose consolidated financial statements that comply with International Financial
Reporting Standards have been produced for public use; and the address where those consolidated financial
statements are obtainable.
b) a list of significant investments in subsidiaries, joint ventures and associates, including:
i. the name of those investees.
LECTURE NOTES COMPILATION Page 1 of 2
1std Semester A.Y. 2024-2025
PAMANTASAN NG CABUYAO
COLLEGE OF BUSINESS, ACCOUNTANCY & ADMINISTRATION
ii. the principal place of business (and country of incorporation, if different) of those investees.
iii. its proportion of the ownership interest (and its proportion of the voting rights, if different) held in those
investees.
c) a description of the method used to account for the investments listed under (b).
When an investment entity that is a parent prepares separate financial statements as its only financial statements, it
shall disclose that fact. The investment entity shall also present the disclosures relating to investment entities
required by PFRS 12 Disclosure of Interests in Other Entities.
When a parent or an investor with joint control of, or significant influence over, an investee prepares separate
financial statements, the parent or investor shall identify the financial statements prepared in accordance with PFRS
10, PFRS 11 or PAS 28 to which they relate. The parent or investor shall also disclose in its separate financial
statements:
a) the fact that the statements are separate financial statements and the reasons why those statements are
prepared if not required by law.
b) a list of significant investments in subsidiaries, joint ventures and associates, including:
i. the name of those investees.
ii. the principal place of business (and country of incorporation, if different) of those investees.
iii. its proportion of the ownership interest (and its proportion of the voting rights, if different) held in those
investees.
c) a description of the method used to account for the investments listed under (b).
LECTURE NOTES COMPILATION Page 2 of 2
1std Semester A.Y. 2024-2025
