CONSOLIDATED FINANCIAL STATEMENT

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What is meant by associate in consolidated financial statements?



An associate is an entity over which the investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, without having control or joint control over these policies.



 Significant influence is normally assumed to exist if the investor own between … Read the rest

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Conditions set by IFRS 10 to determine entities required to prepare consolidated financial statements

IFRS 10 requires that any entity that is the parent (control other entities) must prepare consolidated financial statements. An entity is a parent if it controls another entity.

Control exists when an 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 … Read the rest