Hi Sir,
Please let me know if following statement is correct:-
The effect of investment in subsidiary on standalone FS of Parent co. will be as per equity method:-
1) Profit/Loss share of Parent in the Profit/Loss of subsidiary = SOPL effect
2) Investment in Subsidiary = SOFP effect
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Parent Standalone FS
5y ago#1Yes, the equity method is an accounting option for investments in subsidiaries (as well as joint ventures and associates) in a parent's separate financial statements. Subsidiaries may alternatively be carried at cost or at fair value in accordance with IFRS 9.
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