Preparation of the Consolidated Statement of Financial Position part 1

ACCA F7 lectures  Download F7 notes

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 charlottemaomao says

    I cannot watch the video lecture here in China..Probably because they are blocked by the Great Fire Wall. So sad

    Are those videos from YouTube? If they are, all the blockage makes sense.

    Really miss those days when I spend months with OT..

  2. 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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