IFRS 10 Objective Scope

Last Updated on 12/02/2020 by 75385885

IFRS 10 Consolidated Financial StatementsIFRS 10 Objective Scope

IFRS 10 Objective Scope


1 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.

Meeting the objective

2 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 and sets out an exception to consolidating particular subsidiaries of an investment entity.

3 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).


4 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 instruments are not traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets);
    3. it did not file, nor is it in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and
    4. ts ultimate or any intermediate parent produces financial statements that are available for public use and comply with IFRSs, in which subsidiaries are consolidated or are measured at fair value through profit or loss in accordance with this IFRS.
  2. [deleted]
  3. [deleted]

4A This IFRS does not apply to post-employment benefit plans or other long-term employee benefit plans to which IAS 19 Employee Benefits applies.

4B 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.

Next chapter: IFRS 10 Control

Last Updated on 12/02/2020 by 75385885

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