O'Reilly logo

International GAAP 2012: Generally Accepted Accounting Practice under International Financial Reporting Standards by Ernst & Young

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 7

Consolidated financial statements (IFRS 10)

1 Introduction

1.1 Background

1.2 Development of IFRS 10

2 Effective Date, Objective and Scope of IFRS 10

2.1 Effective date

2.2 Objective

2.3 Scope

2.3.1 Exemption from preparing consolidated financial statements by an intermediate parent

2.3.1.A Condition (a) – consent of non-controlling shareholders

2.3.1.B Condition (b) – securities not traded in a public market

2.3.1.C Condition (c) – not filing financial statements for listing securities

2.3.1.D Condition (d) – parent’s IFRS financial statements are publicly available

2.3.2 Employee benefit plans and employee share trusts

2.3.3 Entity no longer a parent at the end of the reporting period

2.3.4 Interaction of IFRS 10 and EU law

2.3.5 Combined and carve-out financial statements

3 Control

3.1 Assessing control

3.2 Purpose and design of an investee

4 Power Over an Investee

4.1 Relevant activities

4.1.1 More than one relevant activity

4.2 Existing rights

4.2.1 Evaluating whether rights are substantive

4.2.2 Evaluating whether rights are protective

4.2.2.A Veto rights over operating budgets

4.2.2.B Other veto rights

4.2.2.C Franchises

4.2.3 Incentives to obtain power

4.3 Voting rights

4.3.1 Power with a majority of the voting rights

4.3.2 A majority of voting rights without power

4.3.2.A Evaluating voting rights during bankruptcy

4.3.3 Power without a majority of voting rights (de facto control)

4.3.4 Potential voting rights

4.3.4.A Exercise price or conversion price

4.3.4.B ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required