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Dear sir,
In the notes PG- 27 it mentions that accoeding to IFRS 3, the investment of subsidiary in parents financial statements is recorded either at cost or under IFRS 5 if held for sale.
In the BPP textbook and in iasplus, according to IAS 27, it mentions that investment is measured at cost, under IFRS 5 if held for sale or under IFRS 9.
But according to IFRS 9, IAS 32 and IAS 39, the investments in subsidiaries and associates are not in their scope.
So in this case, how do we value these investments according to IFRS 9?
Thank you
Here’s an extract from IAS 28 Investments in Associates
I believe that that should help (but you’re unlikely to come across this in F7!)
“A parent that is exempted from preparing consolidated financial statements by paragraph 10 of IAS 27 may prepare separate financial statements as its primary financial statements. In those separate statements, the investment in the associate may be accounted for by the cost method or under IAS 39. [IAS 28.13(b)]”
OK?
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