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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
Accounting for investments bases
• Subsidiaries
• Subsidiaries are accounted for by means of consolidation.
The consolidation of subsidiaries and consolidated
financial statements will be discussed later in this chapter.
• Associates
• An investment in an associate should be accounted for as
an investment in the consolidated group financial
statements using the equity method, except when the
investment is acquired and held with a view to dispose in
the near future. In such a case it should be accounted for
under IFRS 5, Non-current Assets Held for Sale and
Discontinued Operations, if all requirements are met.
• Joint arrangements
• A joint arrangement can either be classified as a joint
operation or a joint venture in accordance with IFRS 11.04.
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