| 9.26 | When a parent prepares separate financial statements, it shall select and adopt a policy of accounting for its investments in subsidiaries, associates and jointly controlled entities in those separate financial statements either: |
| (a) | at cost less impairment; |
| (b) | at fair value with changes in fair value recognised in other comprehensive income (or profit or loss) in accordance with paragraphs 17.15E and 17.15F; or |
| (c) | at fair value with changes in fair value recognised in profit or loss. |
| The Appendix to Section 2 Concepts and Pervasive Principles provides guidance on determining fair value. |
| An entity shall apply the same accounting policy for all investments in a single class (for example investments in subsidiaries that are held as part of an investment portfolio, those that are not so held, associates or jointly controlled entities), but it can elect different policies for different classes. |
| This also applies to entities preparing individual financial statements. [AMD 266] |
| 9.26A | A parent that is exempt in accordance with paragraph 9.3 from the requirement to present consolidated financial statements, and presents separate financial statements as its only financial statements, shall account for its investments in subsidiaries, associates and jointly controlled entities in accordance with paragraph 9.26. |
| AMD 266 Amendment Paragraph 9.26 amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017) Effective date 01/01/2019 Previous text 9.26 When an entity that is a parent prepares separate financial statements and describes them as conforming to this FRS, those financial statements shall comply with all of the requirements of this FRS. The parent shall select and adopt a policy of accounting for its investments in subsidiaries, associates and jointly controlled entities either: (a) at cost less impairment; (b) at fair value with changes in fair value recognised in other comprehensive income in accordance with paragraphs 17.15E and 17.15F; or (c) at fair value with changes in fair value recognised in profit or loss (paragraphs 11.27 to 11.32 provide guidance on fair value). The entity shall apply the same accounting policy for all investments in a single class (subsidiaries, associates or jointly controlled entities), but it can elect different policies for different classes. |
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