PAS 27 SEPARATE FINANCIAL STATEMENTS

I. NATURE
PAS 27 prescribes the accounting and disclosure requirements for statements in
subsidiaries, associates and joint ventures when an entity prepares separate financial
statements.
PAS 27 does not mandate which entities should produce separate financial statements.
PAS 27 is applied when an entity chooses, or is required by law, to present separate
financial statements that comply with PFRSs.
Separate financial statements are those presented in addition to:
a. Consolidated financial statements; or
b. The financial statements of an entity with an investment in associate or joint
venture that is accounted for using equity method in accordance with PAS 28
Investments in Associates and Joint Ventures.

II. RECOGNITION
Dividends from a subsidiary, associate or joint venture are recognized in profit or loss
when the entity’s right to receive the dividends is established, except when the
investment is accounted for using the equity method, in which case the dividends are
recognized as deduction to the carrying amount of the investment.

III. MEASUREMENT
If the investments are measured at fair value through profit or loss in non-separate
financial statements, that same measurement is also used in the separate financial
statements.

IV. PRESENTATION
Separate financial statements are prepared in accordance with all applicable PFRSs,
except that investments in subsidiaries, associates or joint ventures are accounted for
either:
a. At cost,
b. In accordance with PFRS 9 Financial Instruments, or
Using the equity method under PAS 28 Investments in Associates