IFRS 10Chapter 6Lesson 1
Consolidating: combining line by line and eliminating the investment
Step 1 of 9Learning objectives
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Consolidation adds up the items of the parent and its subsidiaries line by line, eliminates the parent's investment against its share of the subsidiary's equity, applies uniform policies and, as far as possible, uses a common reporting date.
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Learning objectives
- Explain line-by-line combination and the elimination of the investment against the parent's share of equity.
- Prepare the combination of a parent's and a subsidiary's items with the elimination entry.
- Determine the adjustment when a subsidiary applies a different policy.
- Explain the hierarchy of reporting dates and adjust for significant events.