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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”.