International GAAP 2013: Generally Accepted Accounting Principles under International Financial Reporting Standards

Chapter 7

Consolidated financial statements (IFRS 10)

1 Introduction

1.1 Background

1.2 Development of IFRS 10

2 Effective date, objective and scope of IFRS 10

2.1 Effective date

2.2 Objective

2.3 Scope

2.3.1 Exemption from preparing consolidated financial statements by an intermediate parent

2.3.1.A Condition (a) – consent of non-controlling shareholders

2.3.1.B Condition (b) – securities not traded in a public market

2.3.1.C Condition (c) – not filing financial statements for listing securities

2.3.1.D Condition (d) – parent's IFRS financial statements are publicly available

2.3.2 Employee benefit plans and employee share trusts

2.3.3 Entity no longer a parent at the end of the reporting period

2.3.4 Interaction of IFRS 10 and EU law

2.3.5 Combined and carve-out financial statements

2.3.5.A Common control

2.3.5.B Purpose and users of combined financial statements

2.3.5.C Preparation of combined financial statements

2.3.5.D When combined financial statements are not general-purpose

3 Control

3.1 Assessing control

3.2 Purpose and design of an investee

4 Power over an investee

4.1 Relevant activities

4.1.1 More than one relevant activity

4.1.2 No relevant activities

4.1.3 Management of assets in the event of default

4.2 Existing rights

4.2.1 Evaluating whether rights are substantive

4.2.2 Evaluating whether rights are protective

4.2.2.A Veto rights

4.2.2.B Franchises

4.2.3 Incentives to obtain power

4.3 Voting rights

4.3.1 Power with a majority of the voting rights

4.3.2 A majority ...