I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

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Consolidation means presenting the results, assets and liabilities of a group of companies as if they were 

one company. 

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Consolidate as if you owned everything, and then show the extent to which you do not. 

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A subsidiary is an entity controlled by another entity. 

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An associate is an entity over which another entity exerts significant influence. Associates are accounted 

for in the consolidated statements of a group using the equity method. 

 

A trade investment is a simple investment in the shares of another entity that is not an associate or a 

subsidiary. 

 

Consolidated financial statements present the results of the group; they do not replace the separate 

financial statements of the individual group companies.