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FR
Syllabus A. The Conceptual and Regulatory Framework

Syllabus A4. The Concepts and Principles of Groups 4 / 4

a) Describe the concept of a group as a single economic unit

b) Explain and apply the definition of a subsidiary within relevant IFRS Accounting Standards.[2]

c) Using IFRS Accounting Standards and other regulation, identify and outline the circumstances in which a group is required to prepare consolidated financial statements. 

d) Describe the circumstances when a group may claim exemption from the preparation of consolidated financial statements.

e) Explain the need for using coterminous year ends and uniform accounting polices when preparing consolidated financial statements.[2] 

f) Explain why it is necessary to eliminate intra group transactions. [2]

g) Explain the objective of consolidated financial statements.[2] 

h) Explain why it is necessary to use fair values for the consideration for an investment in a subsidiary together with the fair values of a subsidiary’s identifiable assets and liabilities when preparing consolidated financial statements.[2] 

i) Define an associate and explain the principles and reasoning for the use of the equity method of accounting.[2]
The Concepts and Principles of Groups