Consolidation is based on the concept of 'control' and changes in ownership interests while control is maintained are accounted for as transactions between owners as owners in equity.IAS 27 was reissued in January 2008 and applies to annual periods beginning on or after 1 July 2009, and is superseded by IAS 27 Separate Financial Statements and IFRS 10 Consolidated Financial Statements with effect from annual periods beginning on or after 1 January 2013.[IAS 27.24-25] The financial statements of the parent and its subsidiaries used in preparing the consolidated financial statements should all be prepared as of the same reporting date, unless it is impracticable to do so.[IAS 27.26] If it is impracticable a particular subsidiary to prepare its financial statements as of the same date as its parent, adjustments must be made for the effects of significant transactions or events that occur between the dates of the subsidiary's and the parent's financial statements.Please read our cookie notice for more information on the cookies we use and how to delete or block them.The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected.Control is presumed when the parent acquires more than half of the voting rights of the entity.
Investments that are classified as held for sale in accordance with IFRS 5 shall be accounted for in accordance with that IFRS.[IAS 27.37] Investments carried at cost should be measured at the lower of their carrying amount and fair value less costs to sell.The measurement of investments accounted for in accordance with IAS 39 is not changed in such circumstances.And in no case may the difference be more than three months.[IAS 27.27] Consolidated financial statements must be prepared using uniform accounting policies for like transactions and other events in similar circumstances.[IAS 27.38] An entity shall recognise a dividend from a subsidiary, jointly controlled entity or associate in profit or loss in its separate financial statements when its right to receive the dividend is established.