Rules consolidating financials shroud of turin carbon dating controversy
SFAS 94 amended ARB 51 to eliminate all of the exceptions to consolidation, except when control is likely to be temporary or if it does not rest with the majority owner (as, for instance, if the subsidiary is in legal reorganization or in bankruptcy).
However, SFAS 144 recently eliminated this exception.
Buying a foreign company or just some shares, building up an entirely new business or starting mutual venture with somebody else are some basic ways of spreading the business activities. In today’s article and video, I’d like to outline the basic types of investments, their accounting methods and the IFRS standards you should be looking at.
Consolidation goes “hand in hand” with any foreign business. As the consolidation and group accounts belong to the most popular topics examined in any accounting exam, this is the first article in Before 2013, IAS 27 covered also consolidated financial statements, but this part has been superseded and starting 1 January 2013, you should look to IFRS 10 for the rules about consolidated financial statements. It’s a full IFRS learning package with more than 30 hours of private video tutorials, more than 100 IFRS case studies solved in Excel, more than 120 pages of handouts and many bonuses included.
IFRS 11 requires accounting for joint arrangement based on its specific type: is included in my IFRS Kit so you can have a great resource and support for your exams 🙂 Meanwhile, you can watch the intro to consolidation here: If you liked this article, please help me spread the word about this webpage.
Consolidation is the process that transforms individual financial statements for a group of entities into a single financial statement.
If there’s a significant influence, then investor must account for such an investment using the over the arrangement.
The opposite may be true: investor can have a control despite the share lower than 50%.
Abstract Recent progress has been made toward the convergence of a global set of accounting standards. A significant step in that continued direction will be complete when the FASB finalizes its proposed standard on consolidation policy, aligning its rules with international accounting standards.