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Consolidated & separate financial statements

What is the difference between consolidated financial statements & separate financial statements?

asked Mar 3, 2013 in IAS 27 - Separate Financial Statements by anonymous

2 Answers

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Consolidated financial statements are financial statements of a group including subsidiaries and associates presented on a cumulative basis.

Separate financial statements are financial statements presented by a parent in which the investments are accounted for at cost or in accordance with IFRS 9 Financial Instruments.

That means in consolidated accounts assets & liabilities of subsidiaries are merged with those of the parent. But in separate accounts you only show the subsidiaries/associates as only investments in the parent's accounts.
answered Mar 5, 2013 by kisoor Level 2 Member (3,630 points)
0 votes

Consolidated Financial Statements represents the ("Substance over Form") concept which is a practical application to the significant control any organization enjoys over its Subsidiaries. Consolidated Financial Statements is governed through 6 difference IFRS’s / ISA’s which are;

  1. IAS 27 Separate Financial Statements
  2. IAS 28 Investment in Associates
  3. IFRS Business Combination  
  4. IFRS 10 Consolidated Financial Statements
  5. IFRS 11 Joint Arrangements
  6. IFRS 12 Disclosure of Interest in Other Entities

While the separate financial statements (IAS 27) prescribes ways of accounting for the Investment shown in the Investor (Holding) Financial statements only whether at Cost of Fair Value

answered Apr 15, 2016 by Fzakaria Level 2 Member (4,040 points)