Archive about 'Consolidation Basics'

Exclusion From Consolidation

Tweet Exclusion From Consolidation Under IAS 27 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 […]

Definition Of Control In Consolidation Exercise

Tweet Definition Of Control Under IAS 27 1. IAS 27 defines control as “ the power to govern the financial and operating policies of an enterprise so as to derive benefits from its activities” 2. Control is presumed to exist when the investor owns, directly or indirectly more than one half of the voting power […]

Definition Of Subsidiary

Tweet Definition Of Subsidiary Companies Act defines a subsidiary company as one: (a) in which the investor company (i) controls the composition of the board of directors of the investee company; (ii) controls more than one half of the voting power of the investee company; or (iii) holds more than one half of the issued […]

Consolidation according to International Accounting Standards

Tweet 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 39 – Financial Instruments: “Recognition and Measurement” All financial assets […]

Consolidation according to International Accounting Standards

Tweet 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 Jointly controlled […]

Consolidation according to International Accounting Standards

Tweet 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 Consolidation According to IAS 27: Consolidated Financial Statements A subsidiary is […]