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Ind AS 27 vs IAS 27 — the principal carve-out in Ind AS 27 is that it does NOT allow:
AUse of the EQUITY METHOD in separate FS (IAS 27 permits this; Ind AS 27 disallows because equity method is a consolidation manner, not a measurement basis)
BCost measurement of investments in subsidiaries
CDisclosure of net asset value
DFV measurement of investments under Ind AS 109
Answer & Solution
Correct answer: A. Use of the EQUITY METHOD in separate FS (IAS 27 permits this; Ind AS 27 disallows because equity method is a consolidation manner, not a measurement basis)
Ind AS 27 Appendix 1 carve-out: equity method is disallowed in SFS to keep measurement-basis conceptual purity. IAS 27 permits equity method in SFS; Ind AS does not.
Related questions
An entity must apply the SAME accounting (cost vs Ind AS 109) for EACH CATEGORY of investmAn investment in a JV is initially measured at COST in SFS. The investment is later classiAn entity changes its accounting policy for an existing subsidiary in SFS from COST to FAIContinuing: AFTER the New-Co interposition, the same Ind AS 27 paragraph 13 cost-measuremeNew Co. is interposed between Owners and Company A by issuing equity to Owners in exchangeAn investment entity must measure its investments in subsidiaries at FVTPL under Ind AS 10An entity is a venture capital organisation holding 22% of Company P. Under Ind AS 28, it Parent Ltd.'s group has: Subsidiary A (consolidates), Subsidiary B (consolidation exempt),