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Chapter 20 Consolidated FS - Part 4

The document discusses how to prepare consolidated financial statements when the investment in a subsidiary is measured at other than cost. It states that in the parent's separate statements, the investment can be measured at cost, in accordance with PFRS 9, or using the equity method. However, regardless of the measurement basis used, the consolidated accounts should result in the same amounts because any measurement effects of the investment are eliminated in consolidation. It provides an example problem to demonstrate the application.

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Erwin Labayog Medina
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132 views6 pages

Chapter 20 Consolidated FS - Part 4

The document discusses how to prepare consolidated financial statements when the investment in a subsidiary is measured at other than cost. It states that in the parent's separate statements, the investment can be measured at cost, in accordance with PFRS 9, or using the equity method. However, regardless of the measurement basis used, the consolidated accounts should result in the same amounts because any measurement effects of the investment are eliminated in consolidation. It provides an example problem to demonstrate the application.

Uploaded by

Erwin Labayog Medina
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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(Advanced Financial

Accounting and Reporting


Part 2)
LECTURE AID

2017

ZEUS VERNON B. MILLAN

AFAR PART 2: Zeus Vernon B. Millan


Chapter 20 CONSOLIDATED FS (Part 4)

 
Learning Objective

• Prepare the consolidated financial


statements when the investment in
subsidiary is measured at other than cost.

AFAR PART 2: Zeus Vernon B. Millan


Measurement of investment in subsidiary

In the parent’s separate financial statements, the investment in


subsidiary may be measured, subsequent to acquisition date, either:
a. at cost;
b. in accordance with PFRS 9 Financial Instruments; or
c. using the equity method.

Regardless of the measurement basis, the consolidated accounts should


result to the same amounts. This is because the investment in
subsidiary and the effects of its measurement basis are eliminated in
the consolidated financial statements.

AFAR PART 2: Zeus Vernon B. Millan


• (APPLICATIONS: PROBLEM 19-1: #’s 1 to 8)

AFAR PART 2: Zeus Vernon B. Millan


OPEN FORUM
QUESTIONS????
REACTIONS!!!!!

AFAR PART 2: Zeus Vernon B. Millan


IFA PART 1A: Zeus Vernon B. Millan
END

AFAR PART 2: Zeus Vernon B. Millan

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