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”.


Comments

  1. avatar says

    Goodness me… this tutor is so funny! Classic school master irony… I’ve already completed my studies for F7 but that was two years ago and it is great to be able to go back over that which was learnt back then

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