Page 32 - Finac2 Test 1 Slides - 1. Consolidated And Separate Financial Statements

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Accounting for investments bases

• Subsidiaries

• Subsidiaries are accounted for by means of consolidation.

• 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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