This Indonesia Financial Accounting Standards regulates when the parent wants to make separate financial statements. Separate financial statements only record assets, liabilities, parent equity and large investments in subsidiaries, joint ventures and associates. In separate financial statements, the recording of investments in subsidiaries, associates and joint ventures is recorded as:

1. Acquisition cost 

2. Using the equity method 

3. Using fair value

 

Separate financial statements can only be presented as additional information in the consolidated statements. The parent entity cannot present separate financial statements as general purpose financial statements. Separate financial statements at least consist of:

1. Statement of financial position

2. Income statement

3. Other comprehensive income

4. Statement of changes in equity

5. Cash flow statement

 

Dividends from subsidiaries, joint ventures or associates are recognized in separate financial statements when the entity's right to receive dividends is established. Dividends are recognized in profit or loss, unless the entity chooses to use the equity method, in which case the dividends are recognized as a reduction in the carrying amount of the investment.

 

When the parent ceases to be an investor to the subsidiary, the parent records the change from the date when the change in status occurred. The status change date is treated as the default acquisition date. The fair value of the subsidiary at the date of innate acquisition represents the inherent consideration transferred when recording the investment.

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