Exemption from consolidation of financial statements
- when should financial statements be consolidated
- when should consolidated financial statements be prepared
- when to prepare consolidated financial statements
- who needs to prepare consolidated financial statements
Consolidated financial statements...
12.2 Requirements to prepare consolidated financial statements
Publication date: 30 Jun 2023
us IFRS & US GAAP guide
The requirements for consolidated financial statements are fairly similar under both frameworks.
Consolidated financial statements example
Neither IFRS Accounting Standards nor US GAAP provide for the consolidation of a pension plan by its sponsor. In addition, both have provisions that prevent the consolidation of many investment entities. IFRS Accounting Standards do not provide industry-specific exceptions to the requirement for consolidation of controlled entities, with the exception of specific guidance for investment entities.
In addition, in limited circumstances, IFRS Accounting Standards may be more flexible with respect to the ability to issue nonconsolidated financial statements (i.e., parent-only, separate financial statements).
US GAAP | IFRS Accounting Standards |
Absent a scope exception, any legal entity—regardless of its legal form and the scope of its activities—may be subject to consolidation under ASC 810. The guidance applies to l
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