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How to account for investment in subsidiaries in separate Financial statements.What is cost at initial recognition and subsequent measurement?
in IAS 27 - Separate Financial Statements by

2 Answers

0 votes


I think, in the separate financial statement of the parent, the investment should be accounted at cost initiallysubsequently it needs to test for impairment if any, and if there is any impairment it needs to be accounted in the separate financial statement of the parent. Hope this clarifies


by Level 1 Member (1.3k points)
0 votes
When an entity prepares separate financial statements, it shall account for the investment in Subsidiaries either at Cost OR in accordance with IFRS 9 (Fair value through profit and loss)

It shall apply the chosen method to all categories of available investment as well;
by Level 2 Member (4k points)