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Consolidated statement of financial position

Combine the parent’s and controlled subsidiaries’ assets and liabilities in full, subject to consolidation requirements, and eliminate intragroup balances. Recognise goodwill and non-controlling interest as appropriate, applying acquisition-date fair-value adjustments and subsequent movements. Parent investment in a subsidiary is eliminated against the relevant subsidiary equity rather than retained alongside the subsidiary’s underlying assets.

Worked example

A parent has cash of $100 and its wholly owned subsidiary has cash of $40. If there are no intragroup cash balances or other adjustments, consolidated cash is $140; the parent’s investment in the subsidiary is eliminated separately.

Common mistake

Adding only the parent’s ownership percentage of a controlled subsidiary’s assets or leaving the parent’s investment in place while also including the subsidiary’s underlying net assets.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA FR Direct September 2026–June 2027
ACCA SBR Direct September 2026–June 2027