Abstract
This paper aims to identify the factors that may likely explain the identification of the investments in subsidiaries, associates, and joint ventures under International Accounting Standards (IAS) 27 as a key audit matter in the separate financial statements (SFS) of listed European entities. The final research sample is comprised of 243 entities from 18 European countries. The findings from the logistic regression performed particularly found the weight of those interests (the material relevance) within the entities’ SFS as an explanatory factor, as well as the use of the cost as the accounting method for those interests.
Keywords: associates, IAS 27, joint ventures, key audit matters, separate financial statements, subsidiaries.