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Consolidated financial statements I

What is a group?

1.1 Key definitions

 A group exists when one entity (the parent or investor) controls another (the
subsidiary or investee).

 A parent is ‘an entity that controls one or more entities’ (IFRS 10, Appendix
A).

 A subsidiary is ‘an entity that is controlled by another entity’ (IFRS 10,
Appendix A).

 Non-controlling interest is ‘an equity in a subsidiary not attributable, directly
or indirectly, to a parent’ (IFRS 10, Appendix A).

 Remember definitions as they may be tested in the objective test part of the
examination.

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