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Chapter 16

Principles of consolidated financial

statements

Outcome

By the end of this session you should be able to:

 describe the concept of a group as a single economic unit

 explain why it is necessary to eliminate intra-group transactions

 explain the definition of a subsidiary and the elements of control

 explain alternative circumstances when control may be achieved

 explain how to deal with the need for uniform accounting policies

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 16 of your Study Text

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