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Syllabus A4h

The Objective of Consolidated Accounts 17 / 24

The objective of the consolidated financial statements is to show the position of the group as if it were a single economic entity, therefore:

  1. Assets and liabilities of P and S are included in the consolidated statement of financial position

  2. Income and expenses of P and S are included in the consolidated statement of profit or loss.

  3. All the other comprehensive income of P and S is included in the consolidated statement of profit or loss and other comprehensive income showing other comprehensive income.

  4. Intra-group balances are eliminated

  5. The parent’s investment in each subsidiary is offset against the parent’s portion of equity of each subsidiary.