Ind AS 27
Active
Separate Financial Statements
Prescribes the accounting and disclosure in an entity's separate financial statements for investments in subsidiaries, joint ventures and associates, converged with IAS 27, with a genuine mandatory standalone filing divergence.
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Conceptual Framework Linkage
Same measurement choice as IAS 27, mandatory Indian filing overlay
Ind AS 27 shares IAS 27's core content – when an entity PREPARES separate financial statements, investments in subsidiaries, joint ventures, and associates are accounted for EITHER at COST, in accordance with Ind AS 109 (fair value), or using the EQUITY METHOD. Where Ind AS 27 genuinely diverges in PRACTICE is that the Companies Act, 2013 makes standalone financial statement preparation MANDATORY for every Indian company, a legal requirement IAS 27 itself does not impose (since IFRS defers to LOCAL jurisdictional law on whether separate FS are required at all).
HOW IND AS 27 MAPS TO THE FRAMEWORK
Accountability – mandatory standalone reporting ensures EVERY Indian company (not just consolidating parents) provides a discrete, entity-level financial picture – a company-law-driven choice, not an Ind AS 27 accounting principle Comparability – the measurement OPTIONS themselves (cost/Ind AS 109/equity method) are IDENTICAL to IAS 27
This mandatory filing requirement is a COMPANY LAW divergence, not a divergence in Ind AS 27's own accounting content – Ind AS 27's substantive MEASUREMENT rules are IDENTICAL to IAS 27.
Three measurement options – identical to IAS 27
OptionBasis
CostHistorical cost less impairment
Ind AS 109Fair value through P&L or OCI
Equity methodPer Ind AS 28's mechanics
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Scope & Applicability
What Ind AS 27 covers
Ind AS 27 prescribes accounting/disclosure for investments in subsidiaries, joint ventures, and associates WHEN an entity elects, or is required, to prepare separate financial statements – IDENTICAL scope to IAS 27.
In India, EVERY company must apply this standard, since standalone FS preparation is compulsory under the Companies Act, 2013.
Key definitions you must know
Separate financial statements
IDENTICAL definition to IAS 27 – statements presented by a parent (or investor) in which investments are accounted for at cost, per Ind AS 109, or using the equity method, rather than on the basis of reported results and net assets of investees.
Standalone financial statements
The Companies Act, 2013 terminology for an Indian company's separate financial statements, MANDATORY regardless of consolidation status.
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When Separate Financial Statements Are Prepared
Optional under IAS 27, mandatory under Indian company law
IAS 27 itself is NEUTRAL on whether separate financial statements must be prepared at all – this is left to jurisdictional law/regulation. Ind AS 27 (via Indian company law) makes them MANDATORY for every Indian company, in ADDITION to consolidated financial statements where applicable (see Section 7).
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Measurement Options – Cost, Ind AS 109, or Equity Method
Identical choice to IAS 27
Example 1: Choosing a measurement basis for a subsidiary investment
An Indian parent company holds a 100% investment in a subsidiary, originally acquired for ₹50 crore, with the subsidiary's fair value now estimated at ₹80 crore.
The parent may elect to carry this investment in its STANDALONE financial statements at COST (₹50 crore less any impairment), at FAIR VALUE under Ind AS 109 (₹80 crore, with changes through P&L or OCI depending on the election), or using the EQUITY METHOD – an IDENTICAL choice to what IAS 27 offers globally, with the SAME accounting consequences for each option.
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Dividends from Investees
Identical to IAS 27
Dividends from a subsidiary, JV, or associate are recognised in P&L when the right to receive payment is established, with an assessment of whether the dividend indicates POSSIBLE impairment of the investment – IDENTICAL to IAS 27.
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Group Reorganisations
Identical to IAS 27
Specific guidance for group reorganisations meeting defined criteria (e.g. establishing a new parent) applies IDENTICALLY to IAS 27, allowing the new parent to measure cost at the PREVIOUS carrying amount of its share of equity in the original parent.
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Mandatory Standalone Filing – The Indian Regulatory Divergence
The single most important Ind AS 27-related Indian practical point
Under the Companies Act, 2013, EVERY Indian company – even a wholly-owned subsidiary within a large group, or a parent that ALSO prepares consolidated financial statements – MUST prepare, have audited, and FILE its own STANDALONE financial statements with the Registrar of Companies (RoC), applying Ind AS 27's measurement options at the ENTITY level. This is a distinctly Indian statutory REQUIREMENT – many IFRS jurisdictions do NOT mandate separate financial statements for every entity in a group, particularly where only consolidated reporting is legally required.
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Disclosure of Investments
Identical to IAS 27
Disclosure of the fact separate financial statements have been prepared, a list of significant investments, and the method used to account for them – IDENTICAL to IAS 27.
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Disclosure Requirements
Identical disclosure requirements to IAS 27
Fact that the statements are separate, and reason for their preparation if not otherwise required List of significant investments and measurement basis used Name and registered office of the entity whose consolidated FS comply with Ind AS/IFRS
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Critical Judgments & Estimates
Where management judgement matters most
SIGNIFICANT JUDGEMENTS
Selecting a CONSISTENT measurement policy across categories of investments Assessing indicators of impairment on investments carried at cost
SIGNIFICANT ESTIMATES
Fair value of investments measured under Ind AS 109 Recoverable amount for impairment testing of cost-carried investments
Indian companies must maintain BOTH standalone and (where applicable) consolidated financial statements on an ONGOING basis, given the mandatory dual filing requirement – a genuinely significant compliance workload distinguishing Indian practice from some other IFRS jurisdictions.
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Ind AS 27 vs IAS 27 – Full Comparison
Comprehensive comparison table
FeatureIAS 27Ind AS 27
Measurement options (cost/fair value/equity method)Standard choiceIDENTICAL – no substantive divergence
Requirement to prepare separate FS at allLeft to jurisdictional law – NOT mandated by IAS 27 itselfCompanies Act, 2013 MANDATES standalone FS for every Indian company, regardless of consolidation status
Ind AS 27's own MEASUREMENT content is essentially IDENTICAL to IAS 27 – the mandatory standalone filing requirement is a genuinely significant Indian COMPANY LAW divergence, not an accounting divergence within the standard itself.
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Statement Mapping
Comprehensive event-to-statement mapping table
Event / transactionStatement(s) affectedNotes
Investment measured at cost/fair valueBalance SheetIn the standalone/separate financial statements
Dividend received from investeeP&LRecognised when the right to receive is established
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Related Standards
Cross-reference map
StandardConnection
IAS 27The global counterpart standard, converged in content with a mandatory Indian filing overlay
Companies Act, 2013Mandates standalone financial statement preparation for every Indian company
Ind AS 110Governs CONSOLIDATED financial statements, prepared alongside separate FS where applicable
Quick-reference glossary
Registrar of Companies (RoC)
The Indian authority with which every company must file its standalone (and consolidated, where applicable) financial statements.
Group reorganisation
A restructuring meeting defined criteria permitting carrying-amount-based cost measurement for a new parent – identical to IAS 27.
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Glossary
Registrar of Companies (RoC)
The Indian authority with which every company must file its standalone (and consolidated, where applicable) financial statements.
Group reorganisation
A restructuring meeting defined criteria permitting carrying-amount-based cost measurement for a new parent – identical to IAS 27.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows