ACCA SBR UK Syllabus C. Reporting The Financial Performance Of A Range Of Entities - Other differences - Notes 21 / 24
Other differences
Further differences between IFRS (IAS 27, IFRS 10 and IFRS 12) and FRS 102 Section 9 are as follows:
| IFRS | FRS 102 Section 9 |
|---|---|
| No 'severe long-term restrictions' exemption exists under IFRS 10 (although control may be lost as a result of the restrictions, such that the entity should no longer be classified as a subsidiary). | A subsidiary should be excluded from consolidation if severe long-term restrictions prevent the parent exercising control. |
| IFRS 10 requires exclusion from consolidation of subsidiaries held for sale in accordance with IFRS 5. | A subsidiary should be excluded from consolidation where: - The interest in the subsidiary is held exclusively with a view to subsequent resale; and - The subsidiary has not previously been consolidated in the consolidated financial statements prepared in accordance with FRS 102. Such subsidiaries are required to be measured at fair value with changes recognised in profit or loss. |
| IAS 27 allows three models for accounting for investments in subsidiaries, associates and joint ventures in a parent entity's separate financial statements: - Cost model - Equity model - Measurement and recognition in accordance with IFRS 9 | In the parent's separate financial statements its investments in subsidiaries, associates or joint ventures are accounted for either: - At cost - At fair value through other comprehensive income - At fair value through profit or loss |