IPSAS 34
Active
Separate Financial Statements
Prescribes the accounting and disclosure for investments in associates and joint ventures when an entity elects to present separate financial statements that include such interests but not the entities it controls. Effective 1 January 2017 – and it WITHDREW IPSAS 6 (Consolidated and Separate Financial Statements), taking over the separate-statements carve-out. (IAS 27 equivalent.)
Active Standard
IPSAS 34 Separate Financial Statements is the current, active standard issued by the IPSASB for accounting and disclosure for investments in associates and joint ventures when an entity presents separate (non-consolidated) financial statements. Effective for periods beginning on or after 1 January 2017 – it also WITHDREW IPSAS 6 (Consolidated and Separate Financial Statements), taking over the separate-statements carve-out. Paras. 1–34.
IPSAS 34 is the IPSASB's adaptation of IAS 27 (2011) for the public sector, combined with the formal withdrawal of IPSAS 6. Separate financial statements here are measured at cost (or deemed cost), with the equity method allowed for associates and joint ventures.
1
Objective, Scope & Definitions (paras. 1–8)
Scope (para. 1)
Applies to an entity's investments in associates and joint ventures when it elects (or is required) to present SEPARATE financial statements that include those interests but NOT the entities it controls. Investments accounted for at fair value through other comprehensive income are also covered.
Key definitions
Separate financial statements
Financial statements that include assets and liabilities of the reporting entity, but not those it controls.
Investment entity
An entity that holds investments in associates/joint ventures for their capital appreciation.
2
When Separate Financial Statements Are the ONLY Financial Statements (paras. 7, 9–10)
Control carve-out (para. 9)
A public-sector entity that is a wholly-owned or partially-owned entity may present ONLY separate financial statements when doing so best depicts its economic resources and shows the basis of preparation. If so, it accounts for all investments in associates and joint ventures using the equity method.
The 'control' test still applies – an entity it controls is still excluded from the separate statements but disclosed per IPSAS 38.
3
Preparation – the Three Measurement Choices (paras. 11–13)
Three bases (para. 11)
ChoiceResult
Cost / deemed costAcquisition cost; FVOCI/equity-method for associates/JVs
Fair value (election)FV through other comprehensive income
Equity method (default for associates/JVs)Share of profit/loss & OCI
Public-sector entities generally use cost or deemed cost (IPSAS 33) for the underlying assets, and the equity method for associates/JVs.
4
Investment Entities & Changes in Status (paras. 14–15)
Status change (para. 14)
An entity that was NOT an investment entity but becomes one (or vice-versa) during the period accounts for its investments at FVOCI from the change date, with a re-measurement recognised in profit or loss.
Becomes investment entityRe-measure to FV (P&L)Stops being oneRevert to cost model
5
Dividends or Similar Distributions & Group Reorganizations (paras. 16–18)
Distributions (para. 16)
When a public-sector entity distributes declared dividends or similar, it accounts for its investment in the investee at the ex-dividend date as a DEEMED disposal, recognising any difference between carrying amount and proceeds in profit or loss. Group reorganisations follow the same deemed-disposal logic.
The equity-method shareholder's equity is reduced by the entity's share of dividends declared.
6
Disclosure Requirements (paras. 19–23)
What to show (para. 19)
DisclosureIncludes
Nature of investmentsAssociates, JVs, FVOCI
Carrying amountsCost-model vs FV-election split
Unrealised gainsParent-issuer eliminations
7
Effective Date, Withdrawal of IPSAS 6 & Amendment Timeline (paras. 32–34)
Timeline
DateEvent
Jan 2015Issued
1 Jan 2017Effective date
Jan 2017Withdrew IPSAS 6
2025Amended (latest)
IPSAS 6 (Consolidated and Separate Financial Statements) was withdrawn; its separate-statements function now lives here, and its consolidation function moved to IPSAS 35.
8
Relationship to IAS 27
Mapping (para. 34)
IPSAS 34 mirrors IAS 27 (2011) Separate Financial Statements – cost model, equity method for associates/JVs, FVOCI election, and the deemed-dividend treatment – but retains the public-sector 'service potential' / net-assets language and aligns with the IPSAS first-time-adoption transition (IPSAS 33).
IAS 27 separate FSIPSAS 34 same modelIAS 27 investment entityIPSAS 34 sameIAS 27 withdrawalIPSAS 34 withdrew IPSAS 6
9
Statement / Process Mapping
Where it flows
ProcessLedger
Investment registerAsset Register → Cost / Deemed cost
Equity-method accountingAssociate Module → Share of P&L/OCI
Distribution eventBonus/Dividend → Deemed disposal P&L
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Related Standards – Cross-Reference Map
See also
StandardRelation
IPSAS 33First-time adoption (deemed cost transition)
IPSAS 35Companion consolidation standard
IPSAS 36Equity-method associates/JVs
IAS 27Direct equivalent
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Quick-Reference Glossary
Separate statements
Excludes controlled entities; may be the only statements issued.
Cost model
Carry at cost less impairment; FVOCI election allowed.
Investment entity
Entity holding investments for capital appreciation.
Deemed disposal
Distribution accounted for at ex-dividend date; P&L impact.
Equity method
Associate/JV share of profit/loss & OCI.
IPSAS 6 (withdrawn)
Replaced by IPSAS 34 (separate) + IPSAS 35 (consolidation).