Question

identify the main consequences that flow if a group of entities consolidate?

Answer 1

Objectives of IAS 27:

IAS 27 has the twin objectives of setting standards to be applied:

• in the preparation and presentation of consolidated financial statements for a group of entities under the control of a parent; and
• in accounting for investments in subsidiaries, jointly controlled entities, and associates when an entity elects, or is required by local regulations, to present separate (non-consolidated) financial statements.

Main Consquences :

Identification of subsidiaries

Presentation of consolidated financial statements

Control over subsidiaries

Partial disposal of an investment in a subsidiary

Acquiring additional shares in the subsidiary after control is obtained

Separate financial statements of the parent or investor in an associate or jointly controlled entity