Summary of Ias 27

1678 Words Dec 12th, 2010 7 Pages
|Objectives of IAS 27 | |
|IAS 27 has the twin objectives of setting standards to be applied: | |
|in the preparation and presentation of consolidated financial statements for a group of entities under the control| |
|of a parent; and | |
|in accounting for investments in subsidiaries, jointly controlled entities, and associates when an entity elects, | |
|or is required by local regulations, to present separate (non-consolidated) financial statements. |
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|The consolidated accounts should include all of the parent 's subsidiaries, both domestic and foreign: [IAS 27.12] | |
|There is no exemption for a subsidiary whose business is of a different nature from the parent 's. | |
|There is no exemption for a subsidiary that operates under severe long-term restrictions impairing the | |
|subsidiary 's ability to transfer funds to the parent. Such an exemption was included in earlier versions of IAS | |
|27, but in revising IAS 27 in December 2003 the IASB concluded that these restrictions, in themselves, do not | |
|preclude control. | |
|There is no exemption for a subsidiary that had previously been consolidated and that is now being held for sale. | |
|However, a subsidiary that meets the IFRS 5 criteria as an asset held for sale

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