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BASIS FOR CONCLUSIONS ON IFRS 10 PRESENTATION: The accounting standard IFRS 10 sets the rules for presenting and preparing consolidated financial statements when an entity controls one or more other entities. Find articles, books and online resources providing quick links to the standard, summaries, guidance and news of recent developments.

BASIS FOR CONCLUSIONS ON IFRS 10 PRESENTATION: Preparation of Consolidated Financial Statements
A parent need not prepare a consolidated financial statement if it meets all of the following conditions.

It is a wholly owned subsidiary or partially owned subsidiary of another entity and its other owners including those not otherwise entitled to vote, have been informed and do not object the parent not presenting consolidated financial statements.

b) Its debt equity instruments are not trade in a public market

c) It did not file or does not intend to file its financial statement with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market.

d) Its ultimate or any intermediate parent of the company produces consolidated financial statements available for public use that complies with ifrs.

e) Post employment benefits plans or other long term employee benefit


The objective of IFRS 10 Consolidated Financial Statements is to establish principles for the presentation and preparation of consolidated financial statements when an entity controlsanother entity.

More specifically, IFRS 10:

  • Requires an entity (a parent) that controls one or more other entities (subsidiaries) to present consolidated financial statements;
  • Defines the principle of control as the basis for consolidation and sets out how to identify whether the investor controls the investee;
  • Sets out the accounting requirements for the preparation of consolidated financial statements, and
  • Defines an investment entity and sets out an exception to consolidating particular subsidiaries of an investment entity.

BASIS FOR CONCLUSIONS ON IFRS 10 PRESENTATION: Simply speaking, the basic rule is:

  • If an investor controls its investee => investor must consolidate;
  • If an investor does NOT control its investee =>; investor does NOT consolidate.

So what is control?

BASIS FOR CONCLUSIONS ON IFRS 10 PRESENTATION: An investor controls an investee when the investor:

  • Is exposed to, or has right to variable returns from its involvement with the investee;
  • Has the ability to affect those returns
  • Through its power over the investee.


The International Financial Reporting Standards, usually called the IFRS Standards,are standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB) to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. They are the rules to be followed by accountants to maintain books of accounts which are comparable, understandable, reliable and relevant as per the users internal or external. IFRS, with the exception of IAS 29 Financial Reporting in Hyperinflationary Economies and IFRIC 7 Applying the Restatement Approach under IAS 29, are authorized in terms of the historical cost paradigm. IAS 29 and IFRIC 7 are authorized in terms of the units of constant purchasing power paradigm.

IFRS began as an attempt to harmonize accounting across the European Union but the value of harmonization quickly made the concept attractive around the world. However, it has been debated whether or not de facto harmonization has occurred. Standards that were issued by IASC (the predecessor of IASB) are still within use today and go by the name International Accounting Standards (IAS), while standards issued by IASB are called IFRS. IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). On 1 April 2001, the new International Accounting Standards Board (IASB) took over from the IASC the responsibility for setting International Accounting Standards. During its first meeting the new Board adopted existing IAS and Standing Interpretations Committee standards (SICs). The IASB has continued to develop standards calling the new standards “International Financial Reporting Standards”.

Financial statements are a structured representation of the financial positions and financial performance of an entity. The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the management’s stewardship of the resources entrusted to it.


To meet this objective, financial statements provide information about an entity’s:

  1. Assets;
  2. Liabilities;
  3. Equity;
  4. Income and expenses, including gains and losses;
  5. Contributions by and distributions to owners in their capacity as owners; and
  6. Cash flows.

BASIS FOR CONCLUSIONS ON IFRS 9 HEDGE ACCOUNTING provides India’s top IFRS faculty video classes – online & in Pen Drive/ DVD – at very cost effective rates. Get IFRS Video classes from  to do a great preparation for primary Student.

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