Page 8 - Topic 1 - 1.3. 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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