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CA Final · Financial Reporting · Ind AS 27 Separate Financial Statements

Under Ind AS 27, which description best fits 'separate financial statements'?

Separate financial statements are those presented by a parent or an investor with joint control of, or significant influence over, an investee, in which investments are accounted for at cost or in accordance with Ind AS 109, not by consolidation or the equity method.

  1. AStatements of a parent in which subsidiaries are combined line by line
  2. BStatements presented by a parent or an investor with joint control or significant influence, in which investments are accounted for at cost or in accordance with Ind AS 109Correct
  3. CStatements of a subsidiary prepared only for the tax authorities
  4. DStatements in which investments in associates are accounted for using the equity method

Explanation

Ind AS 27 defines separate financial statements as those presented by a parent, or an investor with joint control or significant influence, in which investments are accounted for at cost or under Ind AS 109. Line-by-line combination describes consolidation and the equity method is not permitted.

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