IAS 27 Separate Financial Statements
IAS 27 addresses separate financial statements, in which investments in subsidiaries, associates and joint ventures are shown as investments rather than consolidated underlying assets and liabilities. It permits specified measurement approaches, including cost, IFRS 9 measurement or the equity method, applied as required by the standard. FA uses this distinction to explain the parent’s own accounts compared with group accounts.
Worked example
A parent may show an investment in S at cost in its separate statement of financial position, while group accounts replace it with S’s underlying balances.
Common mistake
IAS 27 is not the current primary consolidation standard: control and consolidation requirements are addressed by IFRS 10.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |