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IND AS 27- Separate Financial Statements

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The objective of this IND AS 27 is to lay down the accounting and disclosure requirements for investments in subsidiaries, JV, and associates when a parent company prepares separate financial statements.

This standard shall be applied in accounting for investments in subsidiaries, JV, and associates when a parent company elects or is required by law and regulation to present separate financial statements (SFS).

Preparation of separate financial statements (SFS)
Separate financial statements are those dispensed by a parent company (means an investor with control of a subsidiary) or an investor with joint power of, or significant influence over, an investee, during which the investments are considered for at cost or under Ind AS 109, Financial Instruments.

This standard doesn’t mandate an entity to prepare SFS; however, the Companies Act, 2013 requires all companies to prepare SFS. Therefore, when an entity qualifies for SFS that comply with IND AS, Ind AS 27 shall apply to the entity.

When an entity prepares Separate FS, it shall account for investments in subsidiaries, jointly controlled entities, and associates either:

  • At cost, or
  • In conformity with IND AS 109 financial instrument.

If an entity elects to compute its investments in associates or joint ventures at fair value (FV) through the income statement, it shall also account for those investments within the same way in its SFS.

Recognition of dividends
An entity shall recognize a dividend from a subsidiary, jointly controlled entities, or an associate in the statement of income in its SFS when its right to receive the dividend is established. 


  1. The fact that the statements are SFS;
  2. A list of significant investments in subsidiaries, JV, and associates, including the name, country of incorporation or residence, the proportion of ownership interest & voting power held; and
  3. A description of the method/ principle used to account for the investments listed under (2);

When an investment entity that’s a parent company prepares SFS as its only financial statement, it shall disclose that fact. In addition, the investment entity shall also present the disclosures concerning investment entities needed by IND AS 112, Disclosure of Interests in Other Entities.

The entity shall claim the same accounting for each variety of investments. Investments accounted for at cost shall be considered for under IND AS 105, non-current assets held for sale and discontinued operations, when they are categorized as held for sale (or included in a disposal group that is classified as held for sale). In such circumstances, the measurement of investments accounted for under IND AS 109 is not changed.

IND AS 27 does not decree which entities produce separate financial statements available for public use. However, it applies when an entity prepares separate financial statements that comply with international financial reporting standards.

At AJSH, we assist our clients in bookkeeping, payroll, auditing, taxation, secretarial compliances and preparation of financial statements ensuring compliances with applicable standards. If you have any questions or wish to know more about IND AS 27, kindly contact us.


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