A parent company is exempted from presenting consolidated financial statements where it is:-

(a) a wholly owned subsidiary; or

(b) a virtually wholly owned subsidiary and it obtains the approval of the owners of the minority interest not to present consolidated financial statements. A virtually-own subsidiary is one in which the parent owns 90% or more of the voting power.

IAS 27 allows only two (2) circumstances when a subsidiary is excluded from consolidation. They are when:
(a) control is temporary because the subsidiary is acquired and held exclusively with a view to its subsequent disposal in the near future; or
(b) it operates under severe long-term restrictions which significantly impair its ability to transfer funds to its parent.

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