Page 28 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Consolidation of subsidiaries

• The consolidated financial statements are the financial

statements of a group and include all the parent's domestic

and foreign subsidiaries presented as those of a single

economic entity.

• There is no exception for a subsidiary whose business is of a

different nature than the parent’s, nor is there an exception

for a subsidiary for which control is intended to be

temporary.

• Once an investment ceases to fall within the definition of a

subsidiary, it should be accounted for as an associate under

IAS 28, or as a joint arrangement under IFRS 11, or as an

equity investment under IFRS 9 (IFRS 10.25(b)).

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