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7296 Points
Joined March 2019
If you have Controlling interest on assets, and if you have the right to control financial and operating policies of your investment, it is treated as a Subsidiary.
If you don’t have the Control, but have significant influence, then it will be treated as Associate.
If you are a parent who does not prepare consolidated statements- then maintain separate financial statements I.e. include investments in subsidiaries, associates, and JV in the same way.
If you are not a parent, and just an investor, you have to include the investment in your IndAS 27 financial statements.
If you are a parent, if you do consolidation statements, you have to consolidate using equity method for subsidiaries, Associates and JV.
So, if you only have significant interest, account it as Associate.
If you have control as well, it becomes a subsidiary.
Technically, all JV’s have significant influence or joint control. If you alone hold the control, it is a subsidiary. (previously held interests IndAS 103.41-42 or 27.6)
You can account this as: if you have consolidated statements, report it in accordance with equity method.
If you maintain separate statements: maintain records in accordance with ‘cost or instruments’.