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International Accounting Standard (IAS) 27
Consolidated and Separate Financial Statements

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International Accounting Standard (IAS) 27

IAS 27

Consolidated and Separate Financial Statements

Issued in April 1989

Revised in December 2003

Recent amendment: Amended in January 2008

The term "non-controlling interest" replaced "minority interest"
--> amended in January 2008

Non-controlling interest
--> equity in a subsidiary
--> not attributable to a parent (directly or indirectly)

A parent
--> an entity that owns one or more subsidiaries

A subsidiary
--> an entity that is controlled by the parent

Consolidated financial statements are presented by a parent.

All subsidiaries are included in consolidated financial statements.

Consolidated financial statements present
--> financial information of the parent and its subsidiaries
--> as a single economic entity

Steps:

      (1) Eliminate
           --> parent's investment in subsidiaries
                 and
           --> parent's portion of subsidiary's equity

      (2) Identity
           --> non-controlling interests
           --> in the profit or loss of consolidated subsidiaries

      (3) Identity
           --> non-controlling interests
           --> in the net assets of consolidated subsidiaries

Eliminate (in full):
      (1) intragroup balances
      (2) intragroup transactions
      (3) intragroup income and expenses

Uniform accounting policies are used
--> in preparing consolidated financial statements

Non-controlling interests
--> presented in the consolidated statement of financial position
--> in the equity section

Non-controlling interests
--> reported separately from the equity of
--> the owners of the parent