02-23-2009, 05:58 PM
Dears,
I just want to place a point here for others' info that an entity which has investments in associates (where it has significant influence as defined in IAS 28) will account for such investments under equity method in its consolidated financial statements.
However, in Pakistan, while it has issued consolidated financials, it is also required to issue separate (its stand alone) financial statements. The point to remember is that, when consolidated financials have been issued, the investments in separate financial statements will not be accounted for on equity method. Rather these will be accounted for under IAS 39, or on cost etc, as may be allowed in its scenario.
In contrast, the entity which has investments in such associates but has no subsidiary, will definitely not issue any consolidated financials and in its separate (stand alone) financial statements, it will carry such investments on equity method.
This is a critical thing where people oftenly make mistakes. So it is placed here for info.
Regards,
KAMRAN.
I just want to place a point here for others' info that an entity which has investments in associates (where it has significant influence as defined in IAS 28) will account for such investments under equity method in its consolidated financial statements.
However, in Pakistan, while it has issued consolidated financials, it is also required to issue separate (its stand alone) financial statements. The point to remember is that, when consolidated financials have been issued, the investments in separate financial statements will not be accounted for on equity method. Rather these will be accounted for under IAS 39, or on cost etc, as may be allowed in its scenario.
In contrast, the entity which has investments in such associates but has no subsidiary, will definitely not issue any consolidated financials and in its separate (stand alone) financial statements, it will carry such investments on equity method.
This is a critical thing where people oftenly make mistakes. So it is placed here for info.
Regards,
KAMRAN.
