AASB 127 (July 2004, as amended)AASB 127 (July 2004, as amended)

AASB 127 (July 2004, as amended)

28 Paragraphs 31, 32, 37 and 39 are amended and paragraph 43A is added as follows:

31 An investment in an entity shall be accounted for in accordance with AASB 9 Financial Instruments and AASB 139 Financial Instruments: Recognition and Measurement from the date that it ceases to be a subsidiary, provided that it does not become an associate as defined in AASB 128 or a jointly controlled entity as described in AASB 131.

32 The carrying amount of the investment at the date that the entity ceases to be a subsidiary shall be regarded as the cost on initial measurement of a financial asset in accordance with AASB 9 AASB 139.

37 When an entity prepares separate financial statements, it shall account for investments in subsidiaries, jointly controlled entities and associates either:

(a) at cost, or

(b) in accordance with AASB 9 and AASB 139.

The entity shall apply the same accounting for each category of investments. Investments accounted for at cost shall be accounted for in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with AASB 5. The accounting for measurement of investments accounted for in accordance with AASB 9 and AASB 139 is not changed in such circumstances.

39 Investments in jointly controlled entities and associates that are accounted for in accordance with AASB 9 and AASB 139 in the consolidated financial statements shall be accounted for in the same way in the investor’s separate financial statements.

43A AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, issued in December 2009, amended paragraphs 31, 32, 37 and 39. An entity shall apply those amendments when it applies AASB 9.