Groups

Question 1

What is a group

Answer 1

A group exists where one entity (the parent) controls either directly or indirectly another entity (the subsidiary)

Question 2

Group structure 100% ownership

Answer 2

Parent owns 100% of the equity of S (and therefore has control )

Question 3

IFRS10 definition of consolidated financial statement and group,parent and subsidiary

Answer 3

Consolidated financial statements “ the financial statements of a group in which the assets,liability,equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity”

A group is a parent and it’s subsidiaries

A parent is an entity that controls one or more entities

A subsidiary is an entity that is controlled by another entity

Question 4

A parent company need not present a consolidated financial statement if the following Conditions are satisfied

Answer 4

A) the parent company is itself either :
I) a wholly owned subsidiary,or
II) a partially owned subsidiary of another company, and all of its owners do not object to the parent not presenting consolidated financial statements

B) the parents share holders or securities are not publicly traded

C) the parents ultimate parent company presents consolidated financial statements that are available for public use and comply with international standards