Consolidated statement of financial position - part 1
Taught by James Griffiths · AI tutor support included
In this first part of our consolidated statement of financial position series, you'll learn the fundamental principles of group accounting and why control matters.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Accounting for groups: introduction and structure
- 1:22 IFRS 10 principles and control definition
- 2:46 Determining control through share ownership
- 3:40 Parent and subsidiary terminology explained
- 4:38 Consolidation process and basic workings overview
- 5:15 Key calculations: goodwill, NCI, and reserves
- 6:40 Goodwill calculation: cost minus net assets
About this lesson
We'll explore IFRS 10's definition of control—the power to direct activities and exposure to variable returns—and establish that acquiring 51% or more of ordinary share capital creates a parent-subsidiary relationship requiring consolidation. You'll discover the three essential workings needed when combining group figures: goodwill calculation (what you pay minus the net assets acquired), noncontrolling interest, and group reserves adjustments. This foundation prepares you for more complex consolidation scenarios in SFP 2 and equips you with the core skills needed for SBR and advanced reporting papers.
Duration: 8m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the F2 Objective Test course
All 71 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in