18. When an entity prepares separate financial statements, IAS 27 (as amended in 2008) requires it to account for its investments in subsidiaries, jointly controlled entities and associates either:

 a)    At cost or

b)    In accordance with IAS 39.

19. If a first-time adopter measures such an investment at cost in accordance with paragraph 18, it shall measure that investment at one of the following amounts in its separate opening IFRS statement of financial position: 

a)    Cost determined in accordance with IAS 27 or

b)    Deemed cost. The deemed cost of such an investment shall be its:

                i.      Fair value (determined in accordance with IAS 39) at the entity’s date

               ii.      of transition to IFRSs in its separate financial statements; or

              iii.      Previous GAAP carrying amount at that date.

 A first-time adopter may choose either (i) or (ii) above to measure its investment in each subsidiary, jointly controlled entity or associate that it elects to measure using a deemed cost.