Consolidation according to International Accounting Standards

July 26th, 2007 Comments off
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Consolidated Financials are prepared in accordance with the following IFRS and IAS:

  • IAS 27 “Consolidated Financial Statements”

  • IAS 28 “Accounting for Investments in Associates”

  • IAS 31 “Financial Reporting of Interest in Joint-Ventures”

  • IAS 39 “Financial Instruments: Recognition and Measurement”

  • IFRS 3 “Business Combinations”

IAS 31 Financial Reporting of Interests in Joint Ventures

  1. Jointly controlled entities should be recognised in consolidated financial statements as follows:

    • The benchmark treatment is proportionate consolidation
    • The allowed alternative is the equity method

  1. However, interests held for resale or under severe long-term restrictions should be treated as investments.

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Financial Accounting

 
 

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