Qualifying exam notes for Accountancy

QUALIFYING EXAMINATION
(Notes and Guide)


Separate Financial Statement (PAS 27)

Separate financial statements are those presented in addition to:

 consolidated FS; or
 the FS of an entity with an investment in associate or joint venture that is
accounted for using equity method in accordance with PAS 28

Preparation of Separate FS

Separate FS are prepared in accordance with all applicable PFRSs, except that
investments in subsidiaries, associates, or joint ventures are accounted for either:

 at cost,
 in accordance with PFRS 9, or
 using the equity method under PAS 28

For illustration, refer to Chapter 8 – Page 374-375

Accounting for SME

PFRS for SMEs requires a parent to present consolidated FS but does not require a
parent to present separate FS.

Separate FS are a second set of FS presented by an entity in addition to any of the ff.:

 consolidated FS prepared by a parent,
 FS prepared by a parent exempted from preparing consolidated FS, or
 FS prepared by an entity that is not a parent but is an investor in an associate or
has a venturer’s interest in a joint venture.

Consolidated Financial Statements (PFRS 10)

Definition:

 Parent – an entity that controls one or more entities
 Subsidiary – an entity that is controlled by another entity
 Group – a parent and its subsidiaries
 Consolidated FS – the FS of a group in which the assets, liabilities, equity, income,
expenses and cash flows of the parent and its subsidiaries are presented as those of a
single economic entity.

Preparation of Consolidated FS