Please provide summary on Ind AS 27 - Separate Financial Statements
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Please provide summary on Ind AS 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 law, 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 Indian Accounting Standards.
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, other than in the circumstances set out in paragraphs 8-8A. Separate financial statements need not be appended to, or accompany, those statements.
Financial statements in which the equity method is applied are not separate financial statements. These may be termed as โconsolidated financial statementsโ. Similarly, the financial statements of an entity that does not have a subsidiary, associate or joint venturerโs interest in a joint venture are not separate financial statements.
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> Ind AS 27 - 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.
Separate financial statements are those presented by a parent (that is, 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, โFinancial instrumentsโ.
Financial statements in which the equity method is applied are not separate financial statements. These may be termed as โconsolidated financial statementsโ. Similarly, the financial statements of an entity that does not have a subsidiary, associate or joint venturerโs interest in a joint venture are not separate financial statements.
Separate financial statements shall be prepared in accordance with all applicable Ind AS, except as follows: When an entity prepares separate financial statements, it shall account for investments in subsidiaries, joint ventures and associates either at cost, or in accordance with Ind AS 109.
The entity shall apply the same accounting for each category of investments. Investments accounted for at cost shall be accounted for in accordance with Ind AS 105, โNon-current assets held for sale and discontinued operationsโ, when they are classified as held for sale (or included in a disposal group that is classified as held for sale). The measurement of investments accounted for in accordance with Ind AS 109 is not changed in such circumstances.
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.
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