Preparation of the Consolidated Statement of Financial Position part 1

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Preparation of the Consolidated Statement of Financial Position

• Consolidation is the process of adjusting and combining financial information from the individual financial statements of a parent undertaking and its subsidiary undertakings to prepare consolidated financial statements that present financial information for the group as a single economic entity.

• the Consolidated Statement of Financial Position reflects the assets and liabilities within the control of the parent entity, and how they are owned.

• defined by IAS 27 Consolidated Financial Statements and Accounting for Investments in Subsidiaries, consolidated financial statements are “the financial statements of a group presented as those of a single entity”.


  1. Profile photo of MayLynn says

    Hi,Hv a nice Day!Teacher Mike.Can you help me explain?Two methods hv calculation goodwill in Consolidated Statement of Financial Position.I wanna clearly to know differences of two method(Net assets method & Fair value method).I don’t clear working 2.Hesitated that step.
    Hoping …Your kindly reply Teacher Mike!

    • Profile photo of MikeLittle says

      There really isn’t any difference except in the value attributable to the nci

      If they’re valued on a proportional basis, they are valued as their percentage share of the fair valued net assets.

      If they’re valued on a full fair value basis then the course notes – free on this sit – clearly illustrate the three differe nt ways in which the examiner can give you information to arrive at the nci value


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