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Consolidated financial statements: the financial statements of a group presented as those of a single economic entity.Subsidiary: an entity, including an unincorporated entity such as a partnership, that is controlled by another entity (known as the parent).[IAS 27.33] Where losses applicable to the minority exceed the minority interest in the equity of the relevant subsidiary, the excess, and any further losses attributable to the minority, are charged to the group unless the minority has a binding obligation to, and is able to, make good the losses.
Even when more than one half of the voting rights is not acquired, control may be evidenced by power: [IAS 27.13] SIC-12 provides other indicators of control (based on risks and rewards) for Special Purpose Entities (SPEs).
[IAS 27.35] The accounting depends on whether control is retained or lost: Acquiring additional shares in the subsidiary after control was obtained is accounted for as an equity transaction with owners (like acquisition of 'treasury shares'). In the parent's/investor's individual financial statements, investments in subsidiaries, associates, and jointly controlled entities should be accounted for either: [IAS 27.37] The parent/investor shall apply the same accounting for each category of investments.
Investments that are classified as held for sale in accordance with IFRS 5 shall be accounted for in accordance with that IFRS.
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IAS 27 Consolidated and Separate Financial Statements outlines when an entity must consolidate another entity, how to account for a change in ownership interest, how to prepare separate financial statements, and related disclosures.
source: Asset Restructuring is the process of buying or selling of a company’s assets that comprise of far greater than half of the target company’s consolidated assets.