IFRS 10 Consolidated financial statements


The main objective of consolidated financial statements is to help the users of financial statements make informed economic decisions. When the investors buy the shares of the parent, they buy into the group and want to know how the group is performing, which can be very different from the performance of the parent alone. In these consolidated financial statements, the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are aggregated and presented as one set of accounts, as if they have become one single company. 

When company A becomes a parent and gains control over company B, company A has to prepare consolidated financial statements. This course is designed to help you understand the main concepts related to full consolidation. After reviewing the basic concepts of consolidation, you will go through the three basic steps of consolidation using practical examples and interim tests to enhance understanding. 

This course will enable you to:

  • identify the purpose of consolidation and when it needs to be carried out
  • understand the definition of main concepts related to consolidation, such as parent, subsidiary, group, control, non-controlling interest
  • explain what types of adjustments need to be made in consolidation
  • calculate non-controlling interest
  • calculate goodwill or gain on bargain purchase
  • eliminate intra-group transactions and balances
  • perform the basic steps of preparing a consolidated statement of financial position and consolidated statement of total comprehensive income

Further information:

  • 60 minutes 
  • Language: English, Hungarian, Russian, Serbian, Croatian

This e-learning course is part of an e-learning series designed by PwC Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes.


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Ana Cetkovic

Ana Cetkovic

PwC's Academy Coordinator, PwC Montenegro

Tel: +382 67 643 304