Overview IFRS 10 Consolidated Financial Statements

Overview IFRS 10 Consolidated Financial StatementsShort – To establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities Overview IFRS 10 Consolidated Financial Statements

Longer – IFRS 10 replaces the part of IAS 27 Consolidated and Separate Financial Statements that addresses accounting for subsidiaries on consolidation. What remains in IAS 27 after the implementation of IFRS 10 is the accounting treatment for subsidiaries, jointly controlled entities and associates in their separate financial statements. Contingent consideration Contingent consideration Contingent consideration Contingent consideration Contingent consideration

The aim of IFRS 10 is to establish a single control model that is applied to all entities including special purpose entities. The changes require those dealing with the implementation of IFRS 10 to exercise Read more

Comparability

Comparability – An enhancing qualitative characteristic that enables users to identify and understand similarities in, and differences among, items.

The Conceptual Framework provides the following guidance [Conceptual Framework 2.24 – 2.29]:

Users’ decisions involve choosing between alternatives, for example, selling or holding an investment, or investing in one reporting entity or another. Consequently, information about a reporting entity is more useful if it can be compared with similar information about other entities and with similar information about the same entity for another period or another date. Comparability

Comparing Financial Statements between companies is the qualitative characteristic that enables users to identify and understand similarities in, and differences among, items. Unlike the other qualitative characteristics, comparability does not relate to … Read more

IFRS 10 Cases of no consolidation requirements

This is what this is about: IFRS 10 Cases of no consolidation requirements. This requires all parent entities to present consolidated financial statements, other than: IFRS 10 Cases of no consolidation requirements

  • parent entities that are investment entities (see exception in link). These are an exception to consolidation if they are required (in accordance with IFRS 10 31) to measure all of their subsidiaries at fair value through profit or loss [IFRS 10 4B].

  • intermediate parent entities that meet the strict conditions for exemption, which are set out below:

IFRS 10 Cases of no consolidation requirements

Conditions for a parent entity to be exempt from consolidation [IFRS 10 4]

A parent is not required to present consolidated financial statements if

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