How to distinguish subsidiaries, joint arrangements and associates by assessing power, returns and control under IFRS 10 and the US GAAP consolidation model.
Group Consolidation Academy
Practical guides to group consolidation, audit, and compliance
Learning paths
Browse by topic
Start with the foundations or go directly to the accounting question you need to solve.
01
Consolidation foundations
Determine what enters the group and how the entities are combined.
02
Business combinations
Account for obtaining control, step acquisitions and group reorganisations.
03
Ownership and NCI
Follow equity interests as ownership changes over the life of a subsidiary.
04
Group reporting
Translate, present and explain the group’s consolidated financial information.
All Academy guides
- A practical guide to preparing consolidated financial statements under IFRS 10 and ASC 810, including combination, eliminations, NCI and reporting-period alignment.
- How to translate a foreign subsidiary’s financial statements into the group presentation currency under IAS 21 and ASC 830, including equity, intragroup balances and disposals.
- How to align subsidiaries with the group’s IFRS or US GAAP accounting policies, including consolidation adjustments and their deferred-tax effects.
- How to prepare a consolidated statement of cash flows under IFRS or US GAAP, eliminate intragroup cash flows and handle foreign-currency effects.
- How to account for changes in a parent’s ownership interest when control is retained, including NCI, OCI, goodwill allocation, non-cash consideration and transaction costs.
- How to identify a business, apply the acquisition method under IFRS 3 and ASC 805, measure acquired items and calculate goodwill or a bargain purchase gain.
- How to account for a step acquisition when an investor already holds an interest in an investee, including goodwill, measurement-period adjustments and cash-flow presentation.
- How to account for a business combination under common control using the acquisition method or pooling of interests, with criteria for assessing its substance and worked examples.
- How to identify, measure and present non-controlling interests in consolidated financial statements, including acquisition-date and subsequent measurement.
- How to account for a loss of control in a subsidiary, including derecognition, retained interests, other comprehensive income and the resulting gain or loss.
- How a parent accounts for investments in subsidiaries, associates and joint ventures in separate financial statements using cost, IFRS 9 or the equity method.