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Meeting summaries and observer notes

 IASB July 2007


Accounting in separate financial statements for the formation of a new parent

Paragraph 37 of IAS 27 Consolidated and Separate Financial Statements requires investments in subsidiaries to be accounted for in the parent’s separate financial statements either at cost or in accordance with IAS 39 Financial Instruments: Recognition and Measurement . The Board directed the staff to draft an amendment to IAS 27 to clarify that paragraph 37 does not apply to the formation of a new parent entity for an existing group when there are no changes in substance resulting from the revised organisation structure. The Board tentatively decided that such reorganisations should be accounted for by reference to existing carrying amounts.

Date: 7/17/2007