IAS 27, Separate Financial Statements, requires an entity that has a subsidiary and that reports on separate financial statements for a special purpose (for tax purposes), in addition to its consolidated statements, show the investment in that subsidiary at __________.
A)cost.
B)fair value.
C)cost or fair value.
D)carrying value.

Question

Quizplus · Accepted Answer

IAS 27 allows an entity to show the investment in a subsidiary on its separate financial statements either at cost or fair value. Therefore, option C (cost or fair value) is the correct answer. It should be noted that these options are only available for separate financial statements and not for consolidated financial statements.

IAS 27, Separate Financial Statements, Requires an Entity That Has