{"id":3703,"date":"2021-10-26T02:11:06","date_gmt":"2021-10-26T02:11:06","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/scmohan.com.sg\/?p=3703"},"modified":"2022-08-25T08:43:16","modified_gmt":"2022-08-25T08:43:16","slug":"group-consolidation-of-ifrs","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/scmohan.com.sg\/group-consolidation-of-ifrs\/","title":{"rendered":"Group Consolidation of IFRS"},"content":{"rendered":"

<\/span><\/p>\n

We will examine the Relevant Financial Reporting Standards for a Group of Companies in this series.<\/i><\/b><\/p>\n

What is a Consolidated Financial Statement?<\/span><\/p>\n

Consolidated financial statements are intended for the benefit primarily of the owners (including non-controlling interests) and creditors of the parent company. Assets, liabilities, equity, income, expenses, and cash flows of the parent company and subsidiaries are presented as if they were one economic entity. Including equity accounted associates \/ joint ventures, if applicable.<\/span><\/p>\n

IFRS standards dealing with Group accounts and consolidation<\/b><\/p>\n

The relevant IFRS standards that deals with group account are as follows;<\/span><\/p>\n\n\n\n\n\n\n\n\n
IAS 27 Separate Financial statements<\/span><\/td>\nHow an investor shall present investments in the individual or separate (non-consolidated) financial statements.<\/strong><\/em><\/td>\n<\/tr>\n
IAS 28 Investments in Associates \/ Joint Ventures<\/td>\nIt prescribes the accounting treatment for associates, joint ventures or the entities in which the investor has significant influence (but not control).<\/td>\n<\/tr>\n
IFRS 11 Joint Arrangements<\/span><\/td>\n\n
    \n
  • It deals with the third type of investment \u2013 <\/span>joint arrangement<\/i><\/b>, which could be a joint operation or joint venture.\u00a0<\/span><\/li>\n
  • In both cases, one investor obtains joint control over some business with some other investor.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
IFRS 12 Disclosure of Interests in Other Entities<\/span><\/td>\n\n
    \n
  • IFRS 12 applies to any entity with an interest in a subsidiary, joint arrangement, associate or unconsolidated structured entity.<\/span><\/li>\n
  • The aim is to require the disclosure of information that allows users of financial statements to be able to evaluate: The effects of those interests on its financial position, financial performance, and cash flow.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
IFRS 3 Business Combinations <\/span><\/td>\n\n
    \n
  • IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. an acquisition or merger). <\/span><\/li>\n
  • Such business combinations are accounted for using the ‘acquisition method’, which generally requires, identifying the acquirer, determine the acquisition date, \u00a0 recognising \/ measurement of assets acquired and liabilities \/ any non controlling interest assumed to be measured at their fair values at the acquisition date.<\/span><\/li>\n
  • Recognising and measuring goodwill or a gain from a bargain purchase.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
IFRS 10 Consolidated Financial Statements<\/span><\/td>\n\n