The objective of this IFRS is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.… Continue reading

2-Meeting the objective

To meet the objective in paragraph 1, this IFRS:

  1. requires an entity (the parent) that controls one or more other entities (subsidiaries) to present consolidated financial statements;
  2. defines the principle of control, and establishes control as the basis for consolidation;
  3. sets out how to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate the investee;
  4. sets out the accounting requirements for the preparation of consolidated financial statements; and
  5. defines an investment entity
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3-Meeting the objective

This IFRS does not deal with the accounting requirements for business combinations and their effect on consolidation, including goodwill arising on a business combination (see IFRS 3 Business Combinations).… Continue reading


An entity that is a parent shall present consolidated financial statements. This IFRS applies to all entities, except as follows:

  1. a parent need not present consolidated financial statements if it meets all the following conditions:
    1. it is a wholly-owned subsidiary or is a partially-owned subsidiary of another entity and all its other owners, including those not otherwise entitled to vote, have been informed about, and do not object to, the parent not presenting consolidated financial statements;
    2. its debt or equity
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This IFRS does not apply to post-employment benefit plans or other long-term employee benefit plans to which IAS 19 Employee Benefits applies.… Continue reading


A parent that is an investment entity shall not present consolidated financial statements if it is required, in accordance with paragraph 31 of this IFRS, to measure all of its subsidiaries at fair value through profit or loss.… Continue reading


An investor, regardless of the nature of its involvement with an entity (the investee), shall determine whether it is a parent by assessing whether it controls the investee.… Continue reading


An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.… Continue reading


An investor shall consider all facts and circumstances when assessing whether it controls an investee. The investor shall reassess whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed in paragraph 7 (see paragraphs B80–B85).… Continue reading