A number of factors are considered in making this assessment.For instance, the remuneration of the decision-maker is considered in determining whether it is an agent.
[IFRS 10:1] The Standard: [IFRS 10:1] An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee * Added by Investment Entities amendments, effective 1 January 2014.
An investor determines whether it is a parent by assessing whether it controls one or more investees.
Estimate group holdings and establish each entity’s status in the question. Ascertain the fair value of acquired assets and calculate net assets of the subsidiary.
Meaning and definition of Consolidated Financial Statements Consolidated financial statements refer to the financial statements which lead to the subsidiaries of the holding company its summative accounting figure.
Putting another way, consolidated financial statements can be addressed as the combined financial statements of a parent company and its subsidiaries.[IFRS ] A reporting entity attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests.The proportion allocated to the parent and non-controlling interests are determined on the basis of present ownership interests.The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected.Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.Income and expenses of the subsidiary are based on the amounts of the assets and liabilities recognised in the consolidated financial statements at the acquisition date.