Group statements

Question 1

Define consolidated financial statements

Answer 1

The financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flow of the parent and its subsidiaries are presented as those of a single economic entity.

Question 2

Define separate financial statements

Answer 2

Statements presented by the parent where the investments is accounted for at cost price or according to the requirements of IFRS 9.

Question 3

Define control

Answer 3

When the investor (parent company) is exposed/ has rights, to variable returns from its involvement with the investee (subsidiary) and has the ability to affect those returns through its power over the investee.

Question 4

Define group

Answer 4

Parent company with all its subsidiaries.

Question 5

Define parent

Answer 5

An entity that controls one or more entities.

Question 6

Define subsidiary

Answer 6

An entity which is controlled by another entity.

Question 7

Define non-controlling interest

Answer 7

Equity in a subsidiary not attributable, directly or indirectly, to a parent.

Question 8

Define power

Answer 8

the existing rights that give the current ability to direct the relevant activities.

Question 9

Define relevant activities

Answer 9

activities of the investee that significantly affect the investee’s returns.

Question 10

define consolidation

Answer 10

combining similar items