IAS 27 (2008) CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS, IAS 27 (2011) SEPARATE FINANCIAL STATEMENTS, AND IFRS 10 (2011) CONSOLIDATED FINANCIAL STATEMENTS
Consolidated financial statements are the financial statements of a group presented as if the individual subsidiaries of the group and the parent were a single entity. Consolidated financial statements present the individual assets (e.g. buildings, machines, and inventories) and liabilities of the subsidiaries rather than the direct equity interests in the subsidiaries. A subsidiary is an entity that is controlled by another entity (known as the parent). In separate financial statements of a parent, the investments in subsidiaries are accounted for on the basis of the direct equity interest. They do not present the individual assets and liabilities of the subsidiaries (IAS 27.4). The term “separate financial statements” does not comprise the financial statements of an entity that does not have a subsidiary, associate or venturer's interest in a jointly controlled entity (IAS 27.7).
The effects of changes in foreign exchange rates (IAS 21) as well as the aspects with respect to business combinations covered by IFRS 3 (e.g. the acquisition method) are not described in this chapter of the book.
In May 2011, the IASB issued IFRS 10 “Consolidated Financial Statements” as well as a new version of IAS 27 named “Separate Financial Statements.” The new standards have to be applied in the financial statements as at ...