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How to account for investment in subsidiaries in separate Financial statements?


How to account for investment in subsidiaries in separate Financial statements.What is cost at initial recognition and subsequent measurement?

asked Mar 24, 2016 in IAS 27 - Separate Financial Statements by Waseem khan

2 Answers

0 votes

Hi 

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

 

answered Mar 25, 2016 by sharankans Level 1 Member (1,250 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;
answered Apr 13, 2016 by Fzakaria Level 2 Member (4,040 points)


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