Intro To Consolidation and Group Accounts - Which Method For Your Investment - IfRSbox - Making IFRS Easy

7/31/2019 Intro To Consolidation And Group Accounts - Which Method For Your Investment?
- IFRSbox - Making IFRS Easy
After 2 months, I landed a new position of IFRS conversion manager with 70% pay
rise.
Click here to learn more

By using our website, Learn more
you agree to the use of (/cookies/)
our cookies. Got it!
(https://www.ifrsbox.com/)
Intro To
Consolidation And
Group Accounts –
Which Method For
Your Investment?
(https://www.ifrsbox.com/intro-to-
consolidation-and-group-accounts/)
by Silvia
(https://www.ifrsbox.com/author/sil
via/)
 CONSOLIDATION AND GROUPS

(HTTPS://WWW.IFRSBOX.COM/CATEGORY/CONSOLIDATION-
AND-GROUPS/), IFRS ACCOUNTING
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/IFRS-
ACCOUNTING/), IFRS VIDEOS
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/IFRS-VIDEOS/)
 57 (https://www.ifrsbox.com/intro-
to-consolidation-and-group-
https://www.ifrsbox.com/intro-to-consolidation-and-group-accounts/ 1/42
7/31/2019 Intro To Consolidation And Group Accounts - Which Method For Your Investment? - IFRSbox - Making IFRS Easy
After 2 months, I landed accounts/#comments)

a new position of IFRS conversion manager with 70% pay
rise.
Click
Buying here to
a foreign learn more
company or just some
shares, building up an entirely new
business or starting mutual venture
with somebody else are some basic
ways of spreading the business
activities.
Consolidation goes “hand in hand” with

any foreign business.
But what is it?
Many people refer to consolidation

when they speak about their share in
other business in general.
However, we need to di erentiate

between the individual types of
investments in other businesses,
because every type of the investment
is accounted for in its own way.
What Shall We Do?

First, you need to determine what type
of investment you’re dealing with.
Then, you need to look in the

appropriate IFRS standard and apply
the appropriate rules.
In today’s article and video, I’d like to

outline the basic types of investments,
their accounting methods and the IFRS
standards you should be looking at.
After 2 months, I landed As the position

a new consolidation and
of IFRS group
conversion manager with 70% pay
rise.
accounts belong to the most popular
topics examined
Click here toin learn
any accounting
more
exam, this is the rst article in my
“consolidation series”, which will be
followed by IFRS summaries and on top
of that, I’ll add full consolidation
package of lectures and case studies
into my IFRS Kit
(//www.ifrsbox.com/ifrs-kit).
IFRS Standards
Dealing with Group
Accounts
There are 6 IFRS standards dealing
with group accounts:
1. IAS 27 Separate Financial

Statements
This standard prescribes how the

investor shall present its investments in
the individual or separate (non-
consolidated) nancial statements.
Before 2013, IAS 27 covered also

consolidated nancial statements, but
this part has been superseded and
starting 1 January 2013, you should look
to IFRS 10 (//www.ifrsbox.com/ifrs-10-
consolidated- nancial-statements/) for
the rules about consolidated nancial
statements.
Special For You! Have you already

checked out the IFRS Kit? It’s a full
IFRS learning package with more
After 2 months, I landed athan

new30 hours of
position of private video
IFRS conversion manager with 70% pay
rise.
tutorials, more than 100 IFRS case
studies
Clicksolved in Excel,
here to learn more
morethan
120 pages of handouts and many
bonuses included. If you take action
today and subscribe to the IFRS Kit,
you’ll get it at discount! Click here to
check it out!
(//www.ifrsbox.com/ifrs-kit)
2. IAS 28 Investments in
Associates
IAS 28 (//www.ifrsbox.com/ias-28-
investments-associates-joint-
ventures/)prescribes the accounting
treatment of associates, or the entities
in which the investor has signi cant
in uence (but not control or joint
control).
3. IFRS 3 Business
Combinations
IFRS 3 (//www.ifrsbox.com/ifrs-3-
business-combinations/) outlines the
accounting when the investor obtains a
control over its investment.
People are often confused because

both IFRS 3 and IFRS 10 deal with this
situation, but each of these standards
deals with its own aspects of the same
thing.
IFRS 3 tells us what the business

combination is, how to account for it at
the recognition (but not when you
perform consolidation afterwards –
After 2 months, I landed then

a newit’sposition
IFRS 10),ofhow
IFRStoconversion
measure manager with 70% pay
rise.
goodwill, non-controlling interest and
assets andhere
Click liabilities acquired.
to learn more
4. IFRS 10 Consolidated
Financial Statements
This is the second standard dealing

with the situation when the investor
obtains a control over its investment.
As opposed to IFRS 3 mentioned

above, IFRS 10
(//www.ifrsbox.com/ifrs-10-
consolidated- nancial-statements/)
de nes the control and gives a
guidance to identify whether there is a
control or not.
Then it also prescribes the

consolidation procedures for preparing
consolidated nancial statements.
5. IFRS 11 Joint
Arrangements
joint-arrangements/) deals with the
third type of investment – joint
arrangement, which could be a joint
operation or joint venture. In both
cases, investor obtains joint control
over some business with some other
investor.
Before 2013, IAS 28 included the rules

for joint arrangements, but now, we
should look to IFRS 11.
6. IFRS 12 Disclosure of
Interests in Other Entities
After 2 months, I landed IFRS

a new 12position
relates to
ofall types
IFRS of interests
rise.
in other entities: subsidiaries,
associates, joint to
Click here arrangements
learn more and
unconsolidated structured entities.
It requires disclosures of various kind of

information about these interests.
How to Account for

Your Investment
As I’ve already mentioned above, you
should rst determine WHAT TYPE of
investment you deal with and based on
the type, apply speci ed accounting
treatment.
There are the 4 basic types of

investments:
1. Subsidiaries
consolidated- nancial-statements/)
de nes a subsidiary as “an entity
controlled by another entity”.
The basic indicator of having a control

over subsidiary is the size of your share
in it. If you own more than 50% of
investment’s shares, then it indicates
you control it.
After 2 months, I landed However, that’s of

a new position notIFRS
always the truthmanager with 70% pay
conversion
and sometimes,rise.
investor does NOT
haveClick
a control
hereeven if it owns
to learn moremore than
50% of shares. The opposite may be
true: investor can have a control despite
the share lower than 50%.
If there is a control, then investor must

account for such an investment using
the acquisition method and apply full
consolidation procedures when making
consolidated nancial statements.
2. Associates
ventures/)de nes an associate as “an
entity over which an investor has
signi cant in uence and which is
neither a subsidiary nor an interest in
joint venture”.
Here, the basic indicator of signi cant

in uence is the investors share
between 20% and 50%, but similarly as
with subsidiaries and control, there are
situations where signi cant in uence
might or might not be demonstrated
regardless the size of ownership.
If there’s a signi cant in uence, then

investor must account for such an
investment using the equity method.
3. Joint Arrangements
joint-arrangements/) de nes joint
arrangement as “arrangement of which
After 2 months, I landed 2a or

newmore parties
position ofhave
IFRSjoint control”.manager with 70% pay
conversion
rise.
It does not make any sense to quantify
the “share” here, because it should be
equal for all the parties. So if there are 2
parties of arrangement, each party has
50% share. If there are 3 parties, each
party has 33.3% share – you get the
idea.
Instead, parties need to exercise joint

control over the arrangement. It means
that important decisions require
unanimous consent of all parties of the
arrangement and no single party can
decide independently.
IFRS 11 requires accounting for joint

arrangement based on its speci c type:
If parties established joint venture,

then each party accounts for its
investment using the equity
method in line with IAS 28, and
If parties established joint
operation, then each party
accounts for its own assets,
liabilities, expenses, revenues and
its share on all items incurred
jointly.
4. Other Investments
If an investor acquires any other

investment that does not fall into any of
above categories, then it is accounted
for as a nancial instrument in line with
nancial-instruments-recognition-and-
After 2 months, I landed measurement/) orIFRS

a new position of IFRSconversion
9 manager with 70% pay
rise.
(//www.ifrsbox.com/ifrs-9- nancial-
instruments/).
What’s Next?
This was just a very quick and short
introduction to the world of group
accounts and consolidation and details
are in the other articles that I
recommend you to read:
IAS 28 Investments in Associates

and Joint Ventures
(//www.ifrsbox.com/ias-28-
ventures/)
IFRS 3 Business Combinations
business-combinations/)
IFRS 10 Consolidated Financial
Statements
consolidated- nancial-
statements/)
IFRS 11 Joint Arrangements
(//www.ifrsbox.com/ifrs-11-joint-
arrangements/)
Example: How to consolidate
(//www.ifrsbox.com/consolidatio
n-example/)
After 2 months, I landed Full

a newconsolidation learning
position of IFRS package
conversion is
manager with 70% pay
rise.
included in my IFRS Kit
(//www.ifrsbox.com/ifrs-kit)
Click here to learn more so you can
have a great resource and support for
your exams
Meanwhile, you can watch the intro to

consolidation here:
If you liked this article, please help me

spread the word about this webpage.
Thank you!
Tags In
Consolidation
(https://www.ifrsbox.com/tag/consolidation/)
IAS 27
(https://www.ifrsbox.com/tag/ias-
27/)
IAS 28
rise.
(https://www.ifrsbox.com/tag/ias-
28/)
IFRS 10
(https://www.ifrsbox.com/tag/ifrs-
10/)
IFRS 11
11/)
IFRS 12
12/)
IFRS 3
3/)
JOIN OUR FREE

NEWSLETTER AND
GET
report "Top 7 IFRS

Mistakes" + free
IFRS mini-course
Email *
SIGN ME UP!
Please check your inbox to conﬁrm

your subscription.
 SHARE rise.

(https:
//ww
w.ifrsb
ox.co
 m/ifrs
-10-
(https: consol
//ww idated
w.ifrsb -
ox.co nanci
m/ifrs al-
-15- state
vs-ias- ments
18/) 38 / 159 /)
57 Comments
iyuoha F.O. July 3, 2014 at 7:41

am
(https://www.ifrsbox.com/intro-
accounts/#comment-2089)
SIlvia, you are simply

wonderful. You are a great
blessing to the world of IFRS
 Reply
Silvia M. July 3, 2014 at 8:00

am
rise.
Thank
Click here you, Francis
to learn more This
always makes me feel good
S.
 Reply
simba July 3, 2014 at 10:26 am

hie silvia thank you for the

great stu .
 Reply
OYEWOLE July 3, 2014 at 2:20

pm
“wonderful, wonderful”” Silvia

M. you turn IFRS into a reading
novel for people to have
standard knowledge.
Good Job.
 Reply

pm
Thank you so much for this

poetic comment! Enjoy! S.
 of
After 2 months, I landed a new position Reply
rise.

raj July 3, 2014 at 2:49 pm
Hi Silvia
It’s been a while since your

last email. Hope all is well
Fantastic summary. You have a

natural ability to simplify
di cult subject matter. Really
admire that…
Thank
 Reply

pm
Hi Raj, glad you liked that!

Well, my kids are on their
vacation, so I post once per 2
weeks during this time – the
family is still my priority But
after that, I’ll return to once
per week.
Take care!
S.
 Reply
Shiraz July 3, 2014 at 11:28 pm

(https:/of
After 2 months, I landed a new position /www.ifrsbox.com/intro-
rise.
Clickaccounts/#comment-2096)
here to learn more
what i would say is, this is just
“awesome & user friendly”
many thanks Silvia for sharing

such a great topic in a simple
way, users like me can
understand the basics well.
expecting more on IFRS
regards
 Reply
kazeem July 4, 2014 at 7:26

am
God bless you Silvia, you have

made be a better person in
IFRS within just 1week of my
joining your website
http://www.ifrsbox.com
(http://www.ifrsbox.com), may
God continue to increase your
knowlesge
 Reply
KIBONA July 4, 2014 at 7:54

pm
ThanksofSilivia
After 2 months, I landed a new position IFRS ,conversion
Iam very happy
rise.
to vist you website .God bless
Clickyou
here to learn more
 Reply
Mike July 4, 2014 at 8:22 pm

Unbelievable. Its like ABC
 Reply
Aashutosh July 19, 2014 at

10:35 pm
thanks Silvia , very nice

presentation & easy to
understand.
 Reply
Robert August 7, 2014 at 8:59

am
A very nice basic summary.

Though I think you should
consider emphasising that
power, not voting rights, is the
criteria for assessing control. In
sticking
After 2 months, I landed a new position ofwith
IFRSvoting rights, manager
conversion and with 70% pay
rise.
especially the percentages,
Clickyou runtothe
here risk of
learn having
more
people assume that current
IFRS guidance still
comparable to US GAAP,
where these bright lines are
still in force.
 Reply
Silvia M. August 8, 2014 at 5:04

pm
Hi, yes, you’re right – the

power rules. However, but this
was just basic summary to
introduce people to this
complex topic. Please note I’m
not emphasizing the
“percentages” – I rather write
that it’s just an indicator and
the opposite can be truth. I
write more about the power in
my IFRS 10 summary here:
http://www.ifrsbox.com/ifrs-
10-consolidated- nancial-
statements/
(http://www.ifrsbox.com/ifrs-
10-consolidated- nancial-
statements/)
PS – now I understood your
second comment. You
thought I deleted this one. No,
I did not. The reason it did not
appear immediately is that I
approve
After 2 months, I landed a new position all conversion
of IFRS comments manager with 70% pay
rise. due to high amount
manually
of automatic
Click here machines’
to learn more
spammers, etc. I do it once in
12-24 hours, so you were too
quick. Anyway, I left it there
because I feel I need to
defend myself and my work
for the good of others. Good
luck.
 Reply
robert August 7, 2014 at 11:59

am
Sorry to see that comments

not like “God bless you Silvia,
you have made be a better
person in IFRS within just
1week” are simply deleted.
Puts the integrity of your site

into serious question.
 Reply
Silvia M. August 8, 2014 at 4:59

pm
Hi Robert, did you make any

comment that was deleted? I
don’t remember deleting any
similar comment.
Youof
After 2 months, I landed a new position know,
IFRSIconversion
try to educate
rise.
people in a very simple way
andto
Click here I really
learnappreciate
more their
feedback. It makes me feel
that my work helps someone.
However, I don’t understand
people like you. I know you’re
an IFRS expert, coming from
Czech Republic. Your IFRS
knowledge is so great – I
know it, as I’ve read some of
your valuable commentaries
in other sites (including your
articles in your Czech site). So
I’m quite surprised you rather
attack other people instead of
putting the brains together
and creating something great
for others. Silvia
 Reply
ali akhter September 8, 2014

at 1:47 pm
Silvia, you rock!!! You are great,

both as accountant and as
person.
Robert, don’t spit out your

jealousy here on Silvia. She
does her best for us, and
you???
 Reply
Miss Vee
After 2 months, I landed a new position September
of IFRS 10, 2014
rise.
at 12:28 pm
Click(https:/
here /www.ifrsbox.com/intro-
to learn more
You make teaching and

learning IFRS easy and
fun….thank you.
 Reply
Christabel Ampah September

30, 2014 at 5:06 pm
Silvia you are soo awesome

and your explanation is the
best. I now really understand
the concept of consolidation.
 Reply
Silvia M. October 1, 2014 at

7:14 am
Thank you Christabel, it’s

important to know that you
actually gained something
from my lectures. All the best!
S.
 Reply
emma August 11, 2015 at 6:42

pm
rise.
Clickto-consolidation-and-group-
here to learn more
Please, how can tabular

method of group consolidated
accounts be done using
excel? Please, the inter
company adjustments should
be speci ed in the tabular
excel worksheet.
 Reply
Silvia M. August 12, 2015 at

6:46 am
Hi Emma, I think I have

covered this topic in the other
article in which I illustrated the
“tabular method”. Please try to
search for “How to
consolidate”. It’s coming with
the video. Of course, the
details including
intercompany balances are in
my IFRS Kit
(http://www.ifrsbox.com/ifrs-
kit). S.
 Reply
Susan August 26, 2015 at 7:33

am
rise.
ClickI really
here tolove yourmore
learn videos and
your summaries its wonderful
and very easy to understand,
thank you so much Miss Silvia.
Hope to get more videos on
the updated IFRS’s like 9 and
15.
 Reply
naseem September 1, 2015 at

12:21 pm
Hi Sivia,
Thanks for your good

presentation. A wholly owned
subsidiary should be
consolidated, is there any
exception for not
consolidating the 100 per cent
subsidiary. If yes, could you
please indicate the conditions
for the exception.
Thanks
Naseem
 Reply
Silvia M. September 1, 2015 at

3:48 pm
rise.
Hi there,
Click here for example,
to learn more
“investment entities” exception
under newly amended IFRS
10. S.
 Reply

8:55 am
Hi. Thanks. But the subsidiary

does not fall under the
de nition of an investment
entity.
Thanks
Naseem
 Reply

11:45 am
Subsidiary not, but maybe the

parent.
 Reply

8:02 am
rise. accounts/#comment-2116)
Click here to learnHi.

moreThanks. But the parent is
also not an investment entity.
Thanks
Naseem
 Reply

9:51 am
OK, that was just 1 exception.

There are some more
exceptions (e.g. when an
ultimate parent prepares
consolidated FS, then
intermediate parent does not
need so in some
circumstances), but most of
the time – 100% share
indicates control and if there’s
control, then there’s a need to
consolidate.
 Reply

1:04 pm
Hi Silvia.
After 2 months, I landed a new position of Thanks. I was of the
rise.
same opinion but wanted to
Clickcon rm.to learn more

here
Regards
Naseem
 Reply
MALOMO MICHAEL
September 18, 2015 at 11:06 am
I just landed on your website

but was amazed with the ease
with which you explain group
accounting. Please include
something on consolidating
situations with subsidiaries
and sub-subsidiaries. I am a
Ugandan CPA but now have
challenges with purchasing
your IFRS toolkit. What is the
best way of paying?
 Reply
Silvia M. September 18, 2015

at 2:30 pm
Hi Michael, yes, maybe in the

future, I’ll include some
example with sub-
subsidiaries.
After 2 months, I landed a new position In relation manager
of IFRS conversion to the with 70% pay
rise.
IFRS Kit, you can contact me
via my
Click here contact
to learn form. S.
more
 Reply
Malomo Michael September

21, 2015 at 12:10 pm
Hello Silvia
What are the cases where a
parent may have 50% or more
of the investment shares in a
subsidiary and yet not have a
controlling interest? What
then determines the
controlling interest if not the
investment shares held?
 Reply
Pieter Marais February 10,

2017 at 11:29 am
Power to in uence the

economic decision making of
the entity, and rights to
resulting gain/losses
determines control. (“Control
requires exposure or rights to
variable returns and the ability
to a ect those returns through
power over an investee”.)
 of
After 2 months, I landed a new position Reply
rise.

Phuong Thanh October 7,
2015 at 3:55 am
Thank you, Silvia!

I used your materials to
training IFRS for my students.
Hope see you in Vietnam.
 Reply
Monica November 8, 2015 at

7:25 am
spanish pelease ¡,,,
 Reply
Alexander February 11, 2016

at 10:58 pm
Hi Silvia!
I have a question regarding
IAS 10. Would you do full
consolidation of Company A,
3% of share capital of which is
directly owned by Company B,
assuming that the remaining
97% of of
After 2 months, I landed a new position shares
IFRS Company
conversion A manager with 70% pay
holdsrise.
as treasury stock? Does
Clickit here
matter
towhen
learnthis
more3% stake in
Company A was bought by
Company B: before or after
the treasury stock was built by
Company A?
 Reply
Silvia M. February 12, 2016 at

7:33 am
Dear Alexander,
this is a very interesting
structure; however in this case
it’s absolutely necessary to
examine who controls
Company A. The size of the
share is not as important as
control. So, is Company B able
to exercise control? If yes, then
yes, I would consolidate, no
matter company B has only
3%. Hope this helps. S.
 Reply
James August 21, 2016 at 5:40

pm
Hi Silvia,
After 2 months, I landed a new position of IIFRS
got aconversion
question, how
rise.
does company consolidate
Clickwhile
herethere is nomore
to learn investment
incurred except common
shareholders. Is it the full
consolidation apply? Also,
there is no control over both
companies.
 Reply
Silvia M. August 22, 2016 at

2:22 pm
Dear James, I don’t

understand your question.
Who should/should not
consolidate? What “both”
companies? If there is a
company A having 2
shareholders, then there’s
nothing to consolidate. Please
explain it further. S.
 Reply
James August 22, 2016 at 3:24

pm
Hi Silvia,
First of all, sorry for my bad

English. Let me try to explain
further my situation.
I am the sole
After 2 months, I landed a new position of IFRS conversion shareholders
manager for pay
with 70%
rise. company A & B. But the
Click here to learncompany

more was run by 2
di erent directors and
management. For some
reason, the auditor of
company A nd out that the
company B has the same
shareholder and the auditor
for company A request to
consolidate the account for
company A & B. How can it be
done? And i can’t nd any
relevant information and
reasons to consolidate the
accounts. If so, how will it
a ect company A.
Thanks in advance.
 Reply
Venkateshwar Rao
(http://www.ifrsbox.com)
October 10, 2016 at 12:53 pm
Dear Silvia,
If the parent company

nancial year end on 31 March
2016, one of the subsidiary
companies nancial year end
on 31 December 2015 and one
of the subsidiary companies
nancial year end on 30 April
2016. Is it possible to prepare
consolidated
After 2 months, I landed a new position nancial
of IFRS conversion manager with 70% pay
rise.
statements for parent
Clickcompany for themore

here to learn year ended
31 March 2016? Please note
that there is no signi cant
material transaction occurred
in subsidiary companies from
01 January 2016 to 30 April
2016.
Thanks and Regards,
 Reply
Akrity Acharya December 17,

2016 at 6:04 am
It just simpli es everything…

very e ective… !!!
 Reply
Carlos Campos February 15,

2017 at 4:07 pm
Hi Silvia,
I’ve discovered this website
about IFRS by accident and it’s
been great discovering your
tips and explanations. they are
direct, simple and very useful.
Thank you!
 Reply
rise.

nikhil March 3, 2017 at 5:16 am
Hi Silvia
Great work..:)
 Reply
Shikha Gupta March 30, 2017

at 5:31 pm
Dear Silvia,
You are really great. I just love

your way of presentation .
Please mail me your email id
for discussion.
Thanks & Regards,

Shikha
 Reply
Elder Cruz April 19, 2017 at

7:21 pm
Hi Silvia.
Thank you for your excellent
explanation. I have one
question.
After 2 months, I landed a new position Whatconversion
of IFRS happens if manager
the with 70% pay
rise.
subsidiary has a new parent
Clickwhich
here istonot under
learn IFRS?
more
Should this parent adopt IFRS
1 with the comparative
information (3 statements of
nancial position, 2
comprehensive income
statements, 2 cash ow
statements, etc)?
Or… Is there an optional

exception to the comparative
information? Can the new
parent use the book value of
the subsidiary (under IFRS) to
consolidate and indicate in its
notes to the nancial
statements that the parent is
under IFRS?
Thank you so much for your

attention to this
 Reply
Silvia M. April 20, 2017 at 7:43

pm
Dear Elder,
hmmm, if the parent is NOT
under IFRS, does it prepare
the IFRS nancial statements?
Because if not, and the parent
prepares its nancial
statements under totally
di erent standards, then IFRS
3, IFRS
After 2 months, I landed a new position 10 and
of IFRS nothing applies.
rise.
The parent should rather look
to itstoown
Click here reporting
learn more rules and
consolidate accordingly.
Anyway, I think that 1 rule is
universal: when you
consolidate, both parent and
subsidiary should use the
same accounting policies, and
therefore, it would be
necessary to restate
subsidiary’s numbers. S.
 Reply
Sanath November 19, 2017 at

9:51 am
Thank you Silvia! You are the

best!
I don’t need classes now to
learn IFRS.
Do you have a help section
where we can ask questions
from you?
I’m looking forward to buy
your Kit as well.
Keep doing what you are
doing!!!
Hope to see you in person and
also would like to work with
you to make the Accounting
Global , “Perfect”.
 Reply
Silvia M. November 19, 2017 at
rise.
10:09 am
Click here to /www.ifrsbox.com/intro-
(https:/ learn more
Hi Sanath, glad you like my

page and thank you for your
kind words You can ask
questions here in the
comments below articles, I
often respond. Best! S.
 Reply
King Sitaw May 24, 2018 at

3:56 am
Hello there,
Just an inquiry. For
consolidation and separate
reports of the parent and
subsidiaries, can a subsidiary
use di erent accounting
policies in presenting its
separate nancial statement
and adjust the same for
consolidation purposes?
For example, a subsidiary uses

revaluation method in
accounting for its Property and
equipment while the parent
company uses the cost
method less depreciation. Is
this allowed by IFRS? to
consolidate
After 2 months, I landed a new position di conversion
of IFRS erent manager with 70% pay
rise.
accounting policies? or just for
Clickthe purpose
here of consolidation,
to learn more
the subsidiary needs to adjust
its accounting policy uniform
to the parent company but
retain its presentation on the
separate nancial statement?
 Reply
Arjun M September 8, 2018 at

4:57 am
Thnx Silvia. Brilliantly done.
 Reply
Silvia September 8, 2018 at

9:35 am
Thank you
 Reply
Abdirahman
(http://sugaal56@gmail.com)
January 26, 2019 at 9:34 pm
Silvia, Iof
After 2 months, I landed a new position am really
IFRS amazed with
rise.
your IFRS technical resources,
ClickPlease keep
here to updtaing
learn more with the
best and simplistic concepts
that you are providing us
 Reply
Daniella May 2, 2019 at 12:01

pm
Thanks so much Silvia, you

really make these concepts
easy for me to understand. I
enjoy reading your articles.
More grace!!!
 Reply
Leave a Reply
Message 
Name 
Email 
rise.
Website 
Required elds are marked 
SEND A COMMENT
(https://www.ifrsbox.com/courses/ifrs-
kit/)
rise.
(https://www.ifrsbox.com/my-helpline/)
Recent Comments
Husain (http://Nil) on How to account for

intercompany loans under IFRS
(https://www.ifrsbox.com/intercompany
-loans-ifrs/#comment-55552)
Everjoy Jonga on IFRS 2019 Update:
Major changes you should be aware of
(https://www.ifrsbox.com/ifrs-2019-
update-changes/#comment-55424)
Ahmed HAjji on Summary of IAS 40
Investment Property
(https://www.ifrsbox.com/ias-40-
investment-property/#comment-55411)
Silvia on IFRS 15 vs. IAS 18: Huge Change
Is Here! (https://www.ifrsbox.com/ifrs-
15-vs-ias-18/#comment-55388)
Silvia on IFRS 10 Consolidated Financial
Statements
(https://www.ifrsbox.com/ifrs-10-
consolidated- nancial-
statements/#comment-55373)
Categories
ABOUT
After 2 months, I landed a new IFRS
position of IFRS conversion manager with 70% pay
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/ABOUT-
rise.
IFRS/)
Click here to learn more 14
ACCOUNTING ESTIMATES (IAS 8)

(HTTPS://WWW.IFRSBOX.COM/CATEGORY/ACCOUNTING-
ESTIMATES-IAS-8/)
5
ACCOUNTING POLICIES
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/ACCOUNTING-
POLICIES/)
3
CONSOLIDATION AND GROUPS

(HTTPS://WWW.IFRSBOX.COM/CATEGORY/CONSOLIDATION-
AND-GROUPS/)
19
EMPLOYEES
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/EMPLOYEES/)
8
FAQ
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/FAQ/)
1
FINANCIAL INSTRUMENTS
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/FINANCIAL-
INSTRUMENTS/)
42
FINANCIAL STATEMENTS
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/FINANCIAL-
STATEMENTS/)
22
FOREIGN CURRENCY
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/FOREIGN-
CURRENCY/)
9
HOW TO
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/HOW-
TO/)
17
IFRS ACCOUNTING
ACCOUNTING/)
63
IFRS SUMMARIES
SUMMARIES/)
28
IFRS VIDEOS
rise.
VIDEOS/)
39
IMPAIRMENT OF ASSETS
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/IMPAIRMENT-
OF-ASSETS/)
6
INCOME TAX
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/INCOME-
TAX/)
9
INTANGIBLE ASSETS
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/INTANGIBLE-
ASSETS/)
7
INVENTORIES
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/INVENTORIES/)
14
LEASES
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/LEASES/)
15
MOST POPULAR
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/MOST-
POPULAR/)
6
NOT JUST IFRS

(HTTPS://WWW.IFRSBOX.COM/CATEGORY/NOT-
JUST-IFRS/)
9
PODCAST
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/PODCAST/)
40
PPE (IAS 16 AND RELATED)

(HTTPS://WWW.IFRSBOX.COM/CATEGORY/PPE-
IAS-16-AND-RELATED/)
38
PROVISIONS AND CONTINGENCIES

(HTTPS://WWW.IFRSBOX.COM/CATEGORY/PROVISIONS-
AND-CONTINGENCIES/)
5
REVENUE RECOGNITION
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/REVENUE-
RECOGNITION/)
19
SECTORS&INDUSTRIES
rise.
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/SECTORSINDUSTRIES/)
3
UNCATEGORIZED
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/UNCATEGORIZED/)
2
US GAAP
(HTTPS://WWW.IFRSBOX.COM/CATEGORY/US-
GAAP/)
2
Copyright © 2009-2019 Simlogic, s.r.o.

All Rights Reserved.
IFRS® is the IFRS Foundation’s registered Trade Mark and is used
by Simlogic, s.r.o
under licence during the term and subject to the conditions
contained therein.
Terms of Service (/terms/)

Intro To Consolidation and Group Accounts - Which Method For Your Investment - IfRSbox - Making IFRS Easy

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Intro To Consolidation and Group Accounts - Which Method For Your Investment - IfRSbox - Making IFRS Easy

Uploaded by

Copyright:

Available Formats

7/31/2019 Intro To Consolidation And Group Accounts - Which Method For Your Investment?

- IFRSbox - Making IFRS Easy

Click here to learn more

 CONSOLIDATION AND GROUPS

AND-GROUPS/), IFRS ACCOUNTING

ACCOUNTING/), IFRS VIDEOS

After 2 months, I landed accounts/#comments)

Consolidation goes “hand in hand” with

But what is it?

Many people refer to consolidation

However, we need to di erentiate

What Shall We Do?

Then, you need to look in the

In today’s article and video, I’d like to

After 2 months, I landed As the position

1. IAS 27 Separate Financial

This standard prescribes how the

Before 2013, IAS 27 covered also

Special For You! Have you already

After 2 months, I landed athan

People are often confused because

IFRS 3 tells us what the business

After 2 months, I landed then

This is the second standard dealing

As opposed to IFRS 3 mentioned

Then it also prescribes the

Before 2013, IAS 28 included the rules

After 2 months, I landed IFRS

It requires disclosures of various kind of

How to Account for

There are the 4 basic types of

The basic indicator of having a control

After 2 months, I landed However, that’s of

If there is a control, then investor must

Here, the basic indicator of signi cant

If there’s a signi cant in uence, then

After 2 months, I landed 2a or

Instead, parties need to exercise joint

IFRS 11 requires accounting for joint

If parties established joint venture,

If an investor acquires any other

After 2 months, I landed measurement/) orIFRS

IAS 28 Investments in Associates

After 2 months, I landed Full

Meanwhile, you can watch the intro to

If you liked this article, please help me

JOIN OUR FREE

report "Top 7 IFRS

Please check your inbox to conﬁrm

Click here to learn more

iyuoha F.O. July 3, 2014 at 7:41

SIlvia, you are simply

Silvia M. July 3, 2014 at 8:00

simba July 3, 2014 at 10:26 am

hie silvia thank you for the

OYEWOLE July 3, 2014 at 2:20

“wonderful, wonderful”” Silvia

Silvia M. July 3, 2014 at 6:01

Thank you so much for this

Click here to learn more

It’s been a while since your

Fantastic summary. You have a

Silvia M. July 3, 2014 at 6:01