Page 8 - Finac2 Test 1 Slides - 2. Business Combinations

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Consolidation process requirements

• Per IFRS 10, there are a number of requirements relating to
consolidated financial statements:

• Uniform accounting policies (.19)
• Or adjustments made (B87)

• Consolidate from when control obtained until control lost

(.20)

• Per B86, done as follows:

• Combine like items
• Eliminate “Investment” account and calculate goodwill in terms of IFRS 3,
and
• Eliminate intragroup transactions in full

• NCIs presented as part of equity (.22)

• Attributed portion of P/L and each item of OCI and total
comprehensive income (B94)

• Portions attributed to parent and NCIs based on existing ownership
interests (B89)

• Ignore potential voting rights

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