Please enable JavaScript.
Coggle requires JavaScript to display documents.
The objective of IFRS 10 Consolidated Financial Statements is to establish…
The objective of IFRS 10 Consolidated Financial Statements is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls another entity.
IFRS 10:
Defines the principle of control as the basis for consolidation and sets out how to identify whether the investor controls the investee;
-
Requires a parent that controls one or more subsidiaries to present consolidated financial statements;
Defines an investment entity and sets out an exception to consolidating particular subsidiaries of an investment entity
-
-
Consolidation procedures
Offset (eliminate): the carrying amount of the parent’s investment in each subsidiary & he parent’s portion of equity of each subsidiary;
Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group
Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries;
-
Exceptions
-
It did not file, nor is it in the process of filing;
It is a wholly-owned subsidiary or is a partially-owned subsidiary of another entity and its other owners agree;
Its ultimate or any intermediate parent of the parent produces consolidated financial statements available for public use that comply with IFRSs
-