Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Parent Standalone FS

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Parent Standalone FS

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 5, 2021 at 1:41 pm #634464
    parthbhanushali
    Member
    • Topics: 34
    • Replies: 20
    • ☆☆

    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

    September 5, 2021 at 5:22 pm #634483
    Kim Smith
    Keymaster
    • Topics: 135
    • Replies: 8309
    • ☆☆☆☆☆

    Yes, 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.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.