CAT / FIA FFA Syllabus G. Preparing Simple Consolidated Financial Statements - Terms - Notes ^{1 / 11}

Parent
An entity that has one or more subsidiaries
Subsidiary
An entity, including an unincorporated entity such as a partnership, that is controlled by another entity (known as the parent).
Control
The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities
Consolidated or group financial statements
The financial statements of a group presented as those of a single economic entity.
Non-controlling interest
Non-controlling interest (NCI) arises when the parent entity controls a subsidiary but does not own 100% of it; e.g. if P owns only 70% of the ordinary shares of S, there is a NCI of 30%
Trade/simple investment
An investment in the shares of another entity, that is held for the accretion of wealth, and is not an associate or a subsidiary. Trade investments are shown as investments under non-current assets in the consolidated SFP of the group.