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Consolidation in the public services (The needs for consolidation…
Consolidation in the public services
The needs for consolidation
Stakeholders in the public services
Consolidation of Accounts
Changing ways public services are delivered
Requirements
Statutory
Trading Arms
Pooled Budgets
Review and Plan purposes
Importance
Changing Legal Requirements
Development of new funding streams
Changing Funding Arrangements
Whole Government Accounts
Preparing Consolidated Accounts
Key accounting standards:
Subsidiaries IFRS 10
Associates IFRS 10
Joint Arrangements IFRS 11
Associates
Investor has a participating interest
Parent must exert significant influence
Usually happens when parent owns 20% to 50% of voting
Consolidated into group accounts on a proportional basis (equityt method)
Joint Arrangements
Joint Venture
Ownership is split between two or more parties
Agreement between parties to vote together
Joint Operations
Contractual arrangement
Participants engage in joint activites
Subsidiary
Organisation controlled by another
Parent company holds more than 50% of the Share Capital of the subsidiary
Parent has:
Power over investee
Rights to variable returns
Ability to affect amounts of investees returns
100% consolidated into group accounts on a one to one basis
Preparing Group Accounts
Consistency
Accounting policies consistent
Intra transactions excluded
Consistent Year Ends
