Acca financial Accounting (FA) Study Text ac ca (FA)

 

401 

Consolidated statement 

of financial position 

Chapter learning objectives 

Upon completion of this chapter you will be able to: 

•

 

define and describe the following in the context of group 

accounting 

(i) parent 

(ii) subsidiary 

(iii) control 

(iv)  consolidated or group financial statements 

(v) non

­

controlling interest 

(vi) trade/simple 

investment 

•

 

describe the components of and prepare a consolidated 

statement of financial position or extracts thereof, including 

the following adjustments: 

(i) fair 

values 

(ii) intra

­

group trading 

(iii) unrealised 

profits 

(iv) acquisition 

part

­

way through the year 

•

 

calculate goodwill using the full goodwill method. 

 

 

 

Chapter 

21 

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Consolidated statement of financial position  

402

 

KAPLAN PUBLISHING

 

 

 

 

PER

 

One of the PER performance objectives (PO7) is 

to prepare and review financial statements in 

accordance with legal and regulatory 

requirements. Working through this chapter 

should help you understand how to demonstrate 

that objective. 

---

 

Chapter 21 

KAPLAN PUBLISHING

 

403 

1 Overview 

 

 

 

Introduction 

 

This chapter introduces consolidated accounts, including key definitions 

and the workings required to produce a consolidated statement of 

financial position. The chapter also introduces some of the standard 

accounting adjustments that may be required when preparing 

consolidated financial statements.   

The preparation of consolidated financial statements is a key topic within 

both Financial Reporting and Strategic Business Reporting.