Under IAS 27, the required disclosure when an entity elects not to prepare consolidated financial statements includes providing summarized financial information for its subsidiaries and joint ventures. Here's a breakdown of the examples:
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This example does not provide enough information to determine if it meets IAS 27 requirements, as it only mentions measuring investments in subsidiaries at cost but does not give any details about the subsidiaries or joint ventures.
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This example discloses that the entity measures its investments in subsidiaries at fair value, with the fair value being the quoted price on the London Stock Exchange. However, there is no information about the subsidiaries or joint ventures themselves.
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This example provides more comprehensive information, stating that the entity has two subsidiaries (XYZ and UVW) and one joint venture (RST), with ownership percentages and the nature of their activities (real estate). This would be in line with IAS 27's requirement to disclose summarized financial information for these investments.
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This example discloses transactions and balances with a subsidiary (Subsidiary A), including the amount of transactions, trade receivables, and borrowings. This is relevant to understanding the entity's relationship with its subsidiary but does not provide a complete picture of the subsidiary's financial position.
In summary, the third example best demonstrates the type of disclosures required under IAS 27 when an entity chooses not to prepare consolidated financial statements, as it gives details about the investments and their nature. The first, second, and fourth examples lack some of the necessary information for full compliance with IAS 27.
