The subsidiaries' reporting dates

Learning objectives

• Explain the hierarchy: same reporting date, additional financial information, most recent financial statements adjusted, and a maximum difference of three months.L2, L3
• Determine the adjustment for significant events between the two dates.L3

Normative references

• IFRS 10 §B92The financial statements of the parent and its subsidiaries used for consolidation have the same reporting date; if a subsidiary's reporting date differs, it prepares additional financial information as of the parent's reporting date, unless it is impracticable to do so.
• IFRS 10 §B93If it is impracticable, the parent uses the most recent financial statements of the subsidiary adjusted for the effects of significant transactions or events; the difference between the dates is never more than three months, and the length of the reporting periods and any difference between the dates are the same from period to period.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• A subsidiary's reporting date differs from its parent's. What does the consolidation require?L2
• Pin SA, a subsidiary of Orme SA, has a 30 November year end while Orme's is 31 December. Preparing additional information as of 31 December is impracticable for Pin (case data). Pin sold a major asset in December. Write a short note stating how Orme treats Pin's statements in the consolidation, distinguishing case facts, rule and professional judgement.L3