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Consolidation package of Standards: IAS 27 Separate Financial Statements (amended 2011)


In May 2011, the IASB published a revised version of IAS 27 Separate Financial Statement. The amendments to IAS 27 resulted mainly from the development of the 'consolidation package' of Standards including IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Seperate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures.

All requirements relating to the consolidated financial statements have been removed from IAS 27 and some drafting changes were made to standardise the terminology.

However, the IASB has also made some consequential amendments to IAS 27 as a result of the development of IFRS 11 Joint Arrangements. The requirements from IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures regarding the accounting for those interests in separate financial have been relocated to IAS 27. Moreover, as a consequence of change in classification of joint arrangements introduced by IFRS 11, there was a change of scope in IAS 27, in respect of investments in joint operations structured via a separate vehicle.

IAS 27 (amended 2011) provides guidance on accounting for interests in subsiaries, associates and joint ventures in separate financial statements.

On 9 February 2012, EFRAG issued the Invitation to Comment on its Initial Assessments of IAS 27 (2011) and related Standards and requests comments by 11 March 2012.

On 30 March 2012, EFRAG issued its Endorsement Advice Letter and Effects Study Report relating to the endorsement of IAS 27 (amended 2011) and has concluded that it meets the requirements of endorsement.   EFRAG has also concluded that the benefits to be derived from implementing IAS 27 (amended 2011) are likely to outweigh the costs involved.

Notwithstanding the positive recommendation,  EFRAG recommends the mandatory effective date of IAS 27 (amended 2011) to be 1 January 2014, with early adoption permitted.  

On 29 December 2012  IAS 27 (amended 2011) was published in the official journal.


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