Download Guide on IFRS 10 Consolidated financial statements as at 2025

    

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Note: All the materials in this blog post have been made available to the public for free download by the respective sources. They are compiled here for ease of access to you.

IFRS 10 Consolidated financial statements is one of the most important standards used by public companies listed on the stock exchange. This is because it largely impacts how companies that own other companies report the ownership interest in their financial statements.

When you buy shares in a company, there is a silent rule that indicates that the percentage of shares you buy in the company determines how you assess your investment in the company. This rule generally categorizes your interest in the company as follows: 

% of shares	Type of investment	Applicable standard
< 20%	Ordinary share	IFRS 9
20% or <50%	Associate	IAS 28
50%	Joint venture	IFRS 11
>50%	Subsidiary	IFRS 10

However, the above table does not always apply in practice. This is because the fact and circumstance of every agreement differs and needs to be thoroughly analyzed before a conclusion is reached as to the type of investment that has been made.

IFRS 10 provides a guideline that helps companies to analyze their transactions to figure out when they control another company and how such control should be accounted for.

Essentially, control doesn't mean owning 51% of the shares of another company. It is about having the power to make decisions that significantly impact the other company's profits.

Here's a simple example:

Company A owns 40% of the shares in Company B. Company A can appoint the CEO of Company B and decide on major investments.

Even though Company A does not own a majority, they have the power to control how Company B operates.  As such, under IFRS 10, Company A would likely need to consolidate Company B's financial results with their own.  This means combining Company B's assets, liabilities, revenues, and expenses to theirs to show a single financial picture for the group (Company A - the parent; Company B - the subsidiary).

This blog post compiles for you guidance made available by thought leaders to help you with the learning and understanding of IFRS 10 Consolidated financial statements.

The below resources provide the key requirements of IFRS 10, including practical guidance, eLearning, and illustrative examples/templates. Whether you are new to IFRS 10 or need a refresher, these resources will be helpful.

Click the links below to download them.

IFRS 10 Consolidated financial statements:

IFRS 10 Pdf

Source: BDO

BDO IFRS 10 Consolidated financial statements pdf

Source: Grant Thornton

Grant Thornton IFRS 10 Consolidated financial statements pdf

IFRS 10 eLearn

Source: Deloitte

IFRS 10 Consolidated financial statements eLearn

Consolidated financial statements

Illustrative financial statements

IFRS 10 Standard

Access the IFRS 10 Standard here

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