Professional Documents
Culture Documents
A parent must provide consolidated financial statements that include all of its investments.
subsidiaries, with one exception: A parent need not provide consolidated financial statements in the
event
1. Is the parent itself a fully or partially owned subsidiary? a company's wholly owned subsidiary
and that it has been disclosed to its other owners, including those who are not otherwise qualified to
vote,
the parent not presenting consolidated financial accounts, and do not object to this;
2. debt or equity securities issued by the parent are not exchanged on a public market;
3. The parent has not yet filed its financial statements with a securities filing, nor is it in the process of
doing so.
Commission
4. Consolidated financial statements are produced by the parent's ultimate or any intermediate parents.
that are accessible to the general public and adhere to international financial reporting standards.
An investment should be recorded as an equity investment after it no longer meets the criteria for a
subsidiary.
as a joint venture under PFRS 11 or as an investment under PFRS 9, if appropriate, as an associate under
PAS 28.
Also, interests in associates, subsidiaries, and jointly operated companies that are
The consolidated financial statements must account for all transactions in accordance with PFRS 9 in the
same manner.
financial statements of a parent company and the investor's independent financial accounts do not
For the aforementioned reason, the investor's separate financial statement must include the following
disclosures.
statements and in a parent's financial statements, which are exempt from the requirement to include
consolidated financial
statements:
2. A mention of the consolidated financial statements and the name of the immediate or ultimate
parent
statements and/or the financial statements that include joint-controlling companies and associates.
3. An explanation of how investments in subsidiaries, associates, and ventures are accounted for
regulated entities.