Document ID: chunk:federal_register_of_legislation:F2022C00538:body:0:p2
Version: federal_register_of_legislation:F2022C00538
Segment Type: other
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Character Range: 3030–6145

Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IAS 27
AASB 127 Separate Financial Statements as amended incorporates IAS 27 Separate Financial Statements as issued and amended by the International Accounting Standards Board (IASB).  Australian‑specific paragraphs (which are not included in IAS 27) are identified with the prefix "Aus".  Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability.

Tier 1
For-profit entities complying with AASB 127 also comply with IAS 27.
Not-for-profit entities' compliance with IAS 27 will depend on whether any "Aus" paragraphs that specifically apply to not-for-profit entities provide additional guidance or contain applicable requirements that are inconsistent with IAS 27.

Tier 2
Entities preparing general purpose financial statements under Australian Accounting Standards – Simplified Disclosures (Tier 2) will not be in compliance with IFRS Standards.
AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

Accounting Standard AASB 127

The Australian Accounting Standards Board made Accounting Standard AASB 127 Separate Financial Statements under section 334 of the Corporations Act 2001 on 7 August 2015.

This compiled version of AASB 127 applies to annual periods beginning on or after 1 January 2022. It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 20 December 2021 (see Compilation Details).

Accounting Standard AASB 127
Separate Financial Statements

Objective
1 The objective of this Standard is to prescribe the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

Scope
2 This Standard shall be applied in accounting for investments in subsidiaries, joint ventures and associates when an entity elects, or is required by local regulations, to present separate financial statements.
3 This Standard does not mandate which entities produce separate financial statements. It applies when an entity prepares separate financial statements that comply with Australian Accounting Standards.

Definitions
4 The following terms are used in this Standard with the meanings specified:
Consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.
Separate financial statements are those presented by an entity in which the entity could elect, subject to the requirements in this Standard, to account for its investments in subsidiaries, joint ventures and associates either at cost, in accordance with AASB 9 Financial Instruments, or using the equity method as described in AASB 128 Investments in Associates and Joint Ventures.
5 The following terms are defined in Appendix A of AASB 10 Consolidated Financial Statements, Appendix A of AASB 11 Joint Arrangements