Consolidating financial statements equity
Here, I’d like to summarize the first “consolidation” standard dealing with the consolidated financial statements: IFRS 10.
Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.Except for basic consolidation procedures, IFRS 10 prescribes number of other rules for preparing consolidated financial statements, such as: Most investment entities CANNOT present consolidated financial statements and instead, they need to measure an investment in a subsidiary at fair value through profit or loss in line with IFRS 9 Financial Instruments.Please watch the following video with the summary of IFRS 10: If you like this summary, please let me know by leaving a comment right below. The objective of IFRS 10 is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.[IFRS 10:1] The Standard: [IFRS 10:1] An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee * Added by Investment Entities amendments, effective 1 January 2014.