These consolidated financial statements [1] have been prepared in accordance with the International Financial Reporting Standards for Small and Medium-sized Entities issued by the International Accounting Standards Board. The consolidated financial statements have been prepared on the historical cost basis except for the modification to a fair value basis [2] for certain assets and financial instruments
The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income [3] from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Non-controlling interests in subsidiaries [5] are identified separately from the Group’s equity [6] therein. The interests of non-controlling shareholders are measured at the non-controlling interests’ proportionate share of the fair value of the acquiree’s [7] identifiable net assets. Subsequent to acquisition, the carrying amount [8] of non-controlling interests is the amount of those interests at initial recognition [9] plus the non-controlling interests’ share of subsequent changes in equity.
Adapted from Deloitte International Financial Reporting Standards for Small and Medium-sized Entities (SMEs) Illustrative Financial Statements 2010 – available at www.deloitte.com (last visited 24.9.13)
[1] Bilanci consolidati
[2] Fair value: il corrispettivo al quale un’attività può essere scambiata, o una passività estinta, tra parti consapevoli e disponibili, in una transazione tra terzi indipendenti
[3] IAS 1: Totale conto economico complessivo è la variazione di patrimonio netto durante un esercizio derivante da operazioni e da altri fatti, oltre alle variazioni derivanti dalle operazioni con soci che agiscono nella loro qualità di soci.
[4] IAS 1: Totale conto economico complessivo è la variazione di patrimonio netto durante un esercizio derivante da operazioni e da altri fatti, oltre alle variazioni derivanti dalle operazioni con soci che agiscono nella loro qualità di soci.
[5] Gli interessi di minoranza (IFRS 3)
[6] Patrimonio Netto
[7] Acquisita/o
[8] Valore contabile
[9] Rilevazione iniziale
COMPREHENSION QUESTIONS
- When is historical cost modified to a fair value basis?
- Complete this sentence with ONE word: A subsidiary is an entity _________________ by the parent.
- What is the definition of ‘control’?:
- What is the purpose of ‘control’?
- How are the interests of non-controlling shareholders measured?
- Complete these pairs of opposites:
a) Parent/ _________; b) acquirer/ __________ c) acquisition/ _________
ANSWERS
- For the accounting of certain assets and financial instruments
- controlled
- The power to govern the financial and operating policies of an entity
- To obtain benefits from its (the subsidiary’s) activities.
- In proportion to the fair value of the acquiree’s identifiable net assets.
- a) subsidiary b) acquiree c) disposal
