IFRS 10 Consolidated Financial Statements establishes the principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities. As follows:
- Requires an entity (the parent) that controls one or more other entities (subsidiaries) to present consolidated financial statements;
- Defines the principle of control, and establishes control as the basis for consolidation;
- Sets out how to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate the investee;
- Sets out the accounting requirements for the preparation of consolidated financial statements.; and
- Defines an investment entity and sets out an exception to consolidating particular subsidiaries of an investment entity.
IFRS 10 does not cover the accounting requirements for business combinations and the effect of a business combination on the consolidated financial statements, including goodwill arising in a business combination (as defined in IFRS 3 - Business Combinations).
For more detailed information regarding the IFRS 10 publication and other IFRS-related content, please visit our Brochure Website by clicking the button below.