Consolidated financial statements
You'll learn when and why consolidated financial statements are prepared, and how the single entity concept works in practice.
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In this lesson
- 0:00 Introduction to consolidated financial statements
- 0:23 Economic substance over form principle
- 1:08 Group financial statements structure
- 2:25 Relevant IFRS standards overview
- 3:13 Single entity concept explained
- 4:10 Intra-group transactions elimination
- 4:49 Exemptions from consolidation requirements
- 6:05 IFRS 27 disclosure requirements
About this lesson
This session introduces the fundamental principle that parent and subsidiary companies must be presented as one economic unit in their group financial statements, reflecting economic substance over legal form. You'll discover which transactions get eliminated during consolidation, when non-controlling interests arise, and the rare circumstances where a parent company might be exempt from preparing consolidated statements. This foundational knowledge underpins the detailed consolidation techniques covered later in the Financial Reporting syllabus, and is essential for understanding how groups present their financial position, performance, and resources to stakeholders.
Duration: 7m
Transcript
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