1
The Consolidated Statement of Financial Position
1.
Introduction
As per SLFRS 10 Consolidated Financial Statements
are the financial Statement of a group in which the
assets,
liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are
presented as those of a single economic entity” which means consolidated
financial statements are
financial statements that bring the holding (parent) company's subsidiaries
into its aggregated
accounting figure. The aim of consolidated financial statement is to show the performance of the group
as if it were a single economic entity.
The Consolidated Statement of Financial Position shows the resources controlled by the parent (Assets)
and the claims on the resources by the parent (Equity) and parties external
to the group of entities
(Liabilities). The effects of all the intra group
transactions are eliminated,
since from the economic
entity’s perspective assets and liabilities cannot be resulted (e.g. Intra group receivables and payable)
from the transactions within the group, only from transactions with external parties.
Consolidation schedule
This schedule is used as a tool to add together Parent's and Subsidiary’s assets, liabilities and equity and
make any necessary adjustments. It includes:
• 100% of Parent's assets, liabilities and equity
• 100% of Subsidiary's assets, liabilities and equity
Consolidated Statement of Financial Position as at 31 March 20XX
Parent
Subsidiary
Adjustments
Group
Non-Current Assets
Property, Plant and Equipment
XX
XX
(XX)
XX
Investment
XX
XX
(XX)
XX
Current Assets
Inventory
XX
XX
(XX)
XX
Trade Receivables
XX
XX
(XX)
XX
Cash and Bank
XX
XX
XX
XX
