In this section…
In this section we shall explain what is meant by a group of companies, parent company and subsidiary companies. We will then look at the reporting requirements of parent companies and how the following consolidated financial statements are prepared.
- The consolidated statement of profit or loss and other comprehensive income
- The consolidated statement of financial position
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6.01 IFRS 3 Business combinations
- Businesses and business combinations
- The acquisition method
6.02 IFRS 10 Consolidated financial statements
- Groups of companies
- Requirement to prepare consolidated financial statements
- Control
- Consolidation process
6.03 Calculating goodwill
- Calculation
- Fair values
- Majority shareholdings
- Bargain purchases
6.04 The consolidated statement of profit or loss part 1: the general approach
- Treating the group as a single entity
6.05 The consolidated statement of profit or loss part 2: intragroup trading
- Elimination of the effects of intragroup trading
- Sales and purchases between group members
- Inventories acquired from group members
- Unrealised profits
6.06 The consolidated statement of profit or loss part 3: intragroup interest and dividends
- Elimination of intragroup interest received and paid
- Elimination of intragroup dividends received
6.07 The consolidated statement of profit or loss part 4: non-controlling interests
- Non-controlling interests
- Apportioning profit for the year
- Profit attributable to non-controlling interests
- Profit attributable to the equity holders of the parent company
6.08 The consolidated statement of profit or loss and other comprehensive income
- Gains and losses on revaluation
- Attributing gains and losses
6.09 The consolidated statement of financial position: part 1
- The general approach to calculating consolidated assets and liabilities
- The general approach to calculating equity
6.10 The consolidated statement of financial position: part 2
- Adjusting for intragroup balances
- Adjusting for unrealised profits in inventories
- Non-controlling interests
6.11 The consolidated statement of financial position: part 3
- Differences between the fair and carrying values of assets and liabilities at the date of acquisition
- Goodwill impairments
- Intragroup loans and debentures
6.12 The consolidated statement of financial position: part 4
- Treatment of bargain purchases
- Other reserves including revaluation reserves