(IFRS) for Small and Medium-sized Entities (SMEs)

IFRS FOR SMES – JULY 2009Disclosures in consolidated financial statements9.23 The following disclosures shall be made in consolidated financial statements:(a)(b)(c)(d)the fact that the statements are consolidated financial statements.the basis for concluding that control exists when the parent does not own,directly or indirectly through subsidiaries, more than half of the votingpower.any difference in the reporting date of the financial statements of theparent and its subsidiaries used in the preparation of the consolidatedfinancial statements.the nature and extent of any significant restrictions (eg resulting fromborrowing arrangements or regulatory requirements) on the ability ofsubsidiaries to transfer funds to the parent in the form of cash dividends orto repay loans.Separate financial statementsPresentation of separate financial statements9.24 Paragraph 9.2 requires a parent to present consolidated financial statements.This IFRS does not require presentation of separate financial statements for theparent entity or for the individual subsidiaries.9.25 The financial statements of an entity that does not have a subsidiary are notseparate financial statements. Therefore, an entity that is not a parent but is aninvestor in an associate or has a venturer’s interest in a joint venture presents itsfinancial statements in compliance with Section 14 or Section 15, as appropriate.It may also elect to present separate financial statements.Accounting policy election9.26 When a parent, an investor in an associate, or a venturer with an interest in ajointly controlled entity prepares separate financial statements and describesthem as conforming to the IFRS for SMEs, those statements shall comply with all ofthe requirements of this IFRS. The entity shall adopt a policy of accounting for itsinvestments in subsidiaries, associates and jointly controlled entities either:(a)(b)at cost less impairment, orat fair value with changes in fair value recognised in profit or loss.The entity shall apply the same accounting policy for all investments in a singleclass (subsidiaries, associates or jointly controlled entities), but it can electdifferent policies for different classes.© IASCF 47