Exemption from consolidated financial statements
The conditions include the entity being a wholly owned subsidiary, or a partially owned subsidiary whose other owners have been informed and do not object; its debt or equity instruments are not traded in a public market; it is not filing to issue such instruments publicly; and its ultimate or intermediate parent produces IFRS-compliant consolidated financial statements available for public use, including the relevant investment-entity conditions. Assess each requirement and applicable local law.
Worked example
A privately held intermediate parent is wholly owned, has no publicly traded instruments and its ultimate parent publishes IFRS-compliant consolidated financial statements available for public use. If all IFRS 10 conditions are satisfied, it may claim the exemption.
Common mistake
Assuming consolidation is optional whenever subsidiaries are small or preparation would be costly, without checking the standard’s specific conditions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |