Consolidating financial statements different year ends

However: A difference in fiscal periods does not of itself justify the exclusion of an entity from consolidation.This site uses cookies to provide you with a more responsive and personalised service.CEU will use the Base period, which is Period 12 based upon the report definition and CEE will use Base – 6, which is Period 6. In deciding upon consolidation policy, the registrant must consider what financial presentation is most meaningful in the circumstances and should follow in the consolidated financial statements principles of inclusion or exclusion which will clearly exhibit the financial position and results of operations of the registrant.

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In other situations, consolidation of an entity, notwithstanding the lack of technical majority ownership, is necessary to present fairly the financial position and results of operations of the registrant, because of the existence of a parent-subsidiary relationship by means other than record ownership of voting stock.[IFRS 10:1] The Standard: [IFRS 10:1] An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee * Added by Investment Entities amendments, effective 1 January 2014.In business, consolidation or amalgamation is the merger and acquisition of many smaller companies into much larger ones.IFRS 10 Consolidated Financial Statements outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities it controls.Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee.

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