IAS 27

IAS 27 Objective

• The objective of IAS 27 is to specify the accounting and disclosure requirements for separate financial statements.

Accounting for Investments in Subsidiaries

• When preparing separate financial statements, companies should account for investments in subsidiaries at cost or in accordance with IFRS 9.

Equity Method of Accounting

• IAS 28 provides guidance on the equity method of accounting for investments.

IAS 34 Objective

• The main objective of IAS 34 is to specify the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in financial statements.

Interim Financial Report Content

• An interim financial report includes a condensed balance sheet, a condensed statement of comprehensive income, a condensed statement of cash flows, and selected explanatory notes.

Purpose of Timely and Reliable Interim Financial Reports

• The purpose of timely and reliable interim financial reports is to provide users with an update on the entity's financial position and performance since the last annual reporting date.

Notes of an Interim Financial Report

• The notes of an interim financial report include a summary of significant accounting policies and other explanatory information.

Financial Statements in an Interim Financial Report

• An interim financial report includes a condensed balance sheet, a condensed statement of comprehensive income, and a condensed statement of cash flows.

IFRS First Financial Statements Objective

• The objective of IFRS for an entity's first financial statements is to provide a consistent and transparent framework for the preparation and presentation of financial statements.

IFRS Standard Scope

• The IFRS standard applies to an entity's first financial statements, which are the first annual financial statements in which the entity adopts IFRS.

Purpose of IFRS Standard for Interim Financial Reports

• The purpose of the IFRS standard for interim financial reports is to provide users with an update on the entity's financial position and performance since the last annual reporting date.

Characteristics of First IFRS Financial Statements

• The information in an entity's first IFRS financial statements should be transparent, consistent, and comparable with previous financial statements.

Cost-Benefit Consideration

• The cost-benefit consideration for generating the first IFRS financial statements is that the benefits of adopting IFRS should outweigh the costs.

Opening IFRS Statement of Financial Position

• When preparing an opening IFRS statement of financial position, an entity should recognize and measure all assets and liabilities in accordance with IFRS.

Recognition of Assets and Liabilities

• If IFRSs do not permit the recognition of certain items as assets or liabilities, an entity should not recognize them.

Previous GAAP Items

• Items that were recognized in accordance with previous GAAP but are a different type of asset, liability, or component of equity in accordance with IFRS should be reclassified or adjusted accordingly.

Measuring Recognized Assets and Liabilities

• An entity should measure recognized assets and liabilities in accordance with IFRS.

Preparing and Presenting an Opening IFRS Statement of Financial Position

• An entity should prepare and present an opening IFRS statement of financial position at the date of transition to IFRS.

Test your knowledge of IAS 27 with this quiz! Explore the accounting and disclosure requirements for investments in subsidiaries, joint ventures, and associates when preparing separate financial statements. Assess your understanding of preparing separate financial statements at cost or in accordance with IFRS 9, as well as using the equity method described in IAS 28.