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