ACCA FR Syllabus A. The Conceptual And Regulatory Framework - Objective of consolidated financial statements - Notes ^{8 / 10}

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.