Analysis of consolidated financial statements — Accounting glossary

Consider how acquisitions, disposals, non-controlling interests, intragroup eliminations, accounting policies and changes in group composition affect comparability. Compare relevant ratios and trends with prior periods or other groups, adjusting where appropriate and explaining limitations. A change in group revenue may reflect acquisition timing rather than organic growth in existing operations.

Worked example

Group revenue rises from $1 million to $1.5 million, but $400,000 of the increase comes from a newly acquired subsidiary. Before other changes, existing operations contributed $100,000 of the increase.

Common mistake

Attributing the entire revenue increase to organic growth without considering changes in the group’s composition.

Where it appears in your exams

Qualification	Exam	Relationship	Period
ACCA	FR	Direct	September 2026–June 2027
ACCA	SBR	Direct	September 2026–June 2027