How to distinguish an entity preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option
Posted: 11 Mar 2024, 13:58
Hi,
When looking at the FS of an entity, whether the entity is preparing FS accounts under exemption of investment entity, which allows the entity to show the investment in one line, at fair value under IFRS 9; or an entity which presents separate FS under IAS 27 para 10 with fair value option, and measures the investment in subs at fair value; both look similar.
In such a case, how can you tell that the entity is preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option?
1. Is it true that if an entity that prepares IFRS 10 para 27-33, should include all of its investments in investment at fair value, on the other hand, entity preparing IAS 27, only include it's immediate/direct investment in subs?
2. Is it true that an entity that prepares IFRS 10 para 27-33, should only measures its investment in subsidiaries in accordance with IFRS 9, for investment in associates, IAS 28 should be applied and, investment in equity instruments, IFRS 9 should be applied. On the other hand, an entity preparing FS under IAS 27, can only present investment in subs and associates etc. at cost (although expect to still present equity instrument investments at fair value under IFRS 9)?
3. A entity exempt by IFRS 10 para 27-33, are the FS still called consolidated FS or just financial statements?
Thanks
When looking at the FS of an entity, whether the entity is preparing FS accounts under exemption of investment entity, which allows the entity to show the investment in one line, at fair value under IFRS 9; or an entity which presents separate FS under IAS 27 para 10 with fair value option, and measures the investment in subs at fair value; both look similar.
In such a case, how can you tell that the entity is preparing accounts under IFRS 10 para 27-33 or IAS 27 fair value option?
1. Is it true that if an entity that prepares IFRS 10 para 27-33, should include all of its investments in investment at fair value, on the other hand, entity preparing IAS 27, only include it's immediate/direct investment in subs?
2. Is it true that an entity that prepares IFRS 10 para 27-33, should only measures its investment in subsidiaries in accordance with IFRS 9, for investment in associates, IAS 28 should be applied and, investment in equity instruments, IFRS 9 should be applied. On the other hand, an entity preparing FS under IAS 27, can only present investment in subs and associates etc. at cost (although expect to still present equity instrument investments at fair value under IFRS 9)?
3. A entity exempt by IFRS 10 para 27-33, are the FS still called consolidated FS or just financial statements?
Thanks