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IFRS 10: Consolidated financial statements

IFRS 10 Consolidated Financial Statements establishes principles for the presentations and preparation of consolidated financial statements when an entity controls one or more other entities. The standard was published in May 2011 and is effective from 1 January 2013 (1 January 2014 for EU preparers).

Full text standard

Unaccompanied version of IFRS 10 as at 1 January 2017
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

IFRS 10 summary and timeline

Looking for the synopsis? Our IFRS 10 summary and timeline are now on a separate page, featuring information on current proposals and a timeline of IASB updates.

Which version of the standard?

Financial Reporting Faculty members have unlimited online access to the consolidated edition of IFRS and amendments through the IASB's eIFRS service. Please log into eIFRS to access electronic versions of the standards. Or find out more about how to join the faculty.

The ICAEW Library also offers members and students access to the print versions of the latest IFRS Blue and Red Books. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


ICAEW guidance and commentary

Factsheets

Interests in Other Entities 🔒
Financial Reporting Faculty, 30 January 2017
In May 2011, the IASB published a ‘package of five’ new and revised standards providing updated guidance on the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates: IFRS 10, IFRS 11, IFRS 12, IAS 27 (2011) and IAS 28 (2011). This exclusive factsheet for Financial Reporting Faculty members answers common questions about these standards.

Annual factsheets

These exclusive factsheets, produced annually by the Financial Reporting Faculty for its members, highlight all new and modified requirements for preparers of IFRS accounts. Each annual edition focuses primarily on new requirements with mandatory application for preparers with periods beginning on or after 1 January of that year.

Amendment 1 above (Sale or Contribution of Assets between an Investor and its Associate or Joint Venture amendments to IFRS 10 and IAS 28) is covered in the 2015, 2016 and 2017 IFRS Accounts factsheets.

Amendment 2 above (Investment entities: Applying the Consolidation Exception amendments to IFRS 10, IFRS 12 and IAS 28) is covered in the 2016 IFRS Accounts factsheet.

2015 IFRS Accounts 🔒
Financial Reporting Faculty, 30 January 2017

2016 IFRS Accounts 🔒
Financial Reporting Faculty, 30 January 2017

2017 IFRS Accounts 🔒
Financial Reporting Faculty, 10 May 2017

Articles and features

Getting to grips with the IASB’s new consolidation standards 🔒
Andy Simmonds, By All Accounts, January 2012
From the Financial Reporting Faculty's magazine, Andy Simmonds, Chairman of the Financial Reporting Faculty and Partner in Deloitte LLP, looks at some of the practical implications of the IASB’s ‘package of five’ new and revised standards. The views expressed are very much his own.

Webinars

IFRS Update 🔒
Financial Reporting Faculty, 18 July 2013
This webinar for Financial Reporting Faculty members focused on new and revised standards that are effective for 2013. There have been several significant changes, including major new standards on consolidated financial statements, joint arrangements, disclosure of interests in other entities and fair value measurement and a revised version of IAS 19 Employee Benefits.


Example accounts

IFRS checklists and model financial statements
Online disclosure checklists, general IFRS illustrative statements and compliance questionnaires collected by the ICAEW Library.

Best practice

Company Reporting (Croner-i)
The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. As well as extracts from reports filed by all major public companies, Company Reporting also offers weekly CR Monitor Reports detailing changes to reporting practice and a broader monthly CR Review.

Contact us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com to get any documents from Company Reporting.

ICAEW and Financial Reporting Faculty members can also buy a personal discounted subscription to this product.


External resources

Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

IFRS 10 – Consolidated Financial Statement
Regularly updated timeline and summary from Deloitte IAS Plus, with information on related interpretations and amendments under consideration.

IFRS 10 for asset managers and other related issues
Detailed guide produced by PwC in January 2017. It offers guidance on how to apply the standard in a number of different scenarios.

IFRS 10 and 12 – Questions and answers
Guide from PwC, updated in January 2015, covering power, exposure to variability, principal-agent analysis, silos, disclosure and transition provisions. It also includes a number of comprehensive case studies.

Investment entities amendment – Exception to consolidation
Question and answer guide produced by PwC in December 2014 on the application of the investment entities amendment.

Challenges in adopting and applying IFRS 10
Guide published by EY in December 2013 focusing on requirements of IFRS 10 that differ most from IAS 27 and other key implementation issues.

IFRS 10 Consolidated Financial Statements
Guide published by Ernst & Young in December 2013 analysing the impact of IFRS 10.

A practical guide to IFRSs 10 and 12: Questions and answers
Detailed guide produced by PwC, updated in November 2013. The guide examines common issues that arise in implementing the new standards.

Accounting for collaborations in the life sciences sector: Challenges in applying IFRS 10 and IFRS 11
Guide, with examples, produced by EY in June 2013.

A practical guide to new IFRSs for 2013
Guide published by PwC in March 2013 covering new standards and interpretations, including IFRS 10 with transition guidance and information on amendments on the exception from consolidation for investment entities.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest IFRS handbooks and manuals. You can browse all our books on IFRS 10 and consolidated accounts or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Principles of group accounting under IFRS
Andreas Krimpmann, Wiley, 2015
This book gives practical guidance on managing the issues specific to international group accounting under IFRS 10, IFRS 11 and IFRS 12, illustrated with a step-by-step case study of a mid-size group.
Request this book

International Accounting/Financial Reporting Standards guide
David Alexander and Simon Archer, CCH, 2017
Handbook explaining the latest general and industry-specific international reporting standards (as published by the IASB at 1 September 2016), as well as proposed changes on the immediate horizon. The book features Practice Pointers throughout that describe in plain English how to apply the standards.
Request this book

Wiley IFRS 2017: Interpretation and application of IFRS standards
PKF, Wiley, 2017
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.
Request this book

International GAAP 2017
EY, Wiley, 2017
Comprehensive reference guide to interpreting and implementing IFRS, featuring detailed analysis of technical accounting issues accompanied by worked examples and illustrations taken from the actual financial statements of companies that report under IFRS. This manual deals with standards issued by the IASB up to September 2016.
Request this book

iGAAP 2018: A guide to IFRS reporting (Volume A)
Deloitte, Croner-i, 2018
Practical and comprehensive guidance for entities currently reporting under IFRS and those considering whether to move to IFRS in the near future. This manual deals with standards issued by the IASB as at 1 September 2017.
Request this book

GAAP 2018: UK reporting - IFRSs (Volume C)
Deloitte, Croner-i, 2018
Comprehensive manual explaining how to apply IFRS, focusing on practical implementation issues with commentary and analysis of issues specific to UK companies. This volume deals with standards issued by the IASB as at 1 September 2017.
Request this book

Insights into IFRS
KPMG, Thomson Reuters, 2017
Manual providing practical guidance with an emphasis on the real-life application of IFRS, with examples based on actual questions that have arisen in practice around the world. This book deals with standards issued by the IASB as at 1 August 2017.
Request this book

Manual of accounting: IFRS for the UK 2017
PwC, Lexis Nexis, 2016
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS. This manual deals with standards published by the IASB as at 31 December 2015.
Request this book

Articles

The ICAEW Library subscribes to over 250 current journals and magazines, as well as offering access to 3,000 key UK and international business, management and trade titles online. You can browse articles on IFRS 10 and consolidated accounts or request any of the selected articles below by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Leading the way
J Boulton, Accountancy, April 2014
The article analyses the changes implicated by the early adoption of new International Financial Reporting Standards which amend rules on group accounting: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interest in Other Entities. It discusses the effect of IFRS 10 and 11 on European non-financial corporations, including whether the standards have a material effect.

Head to head with IFRS
S Perrin, Accountancy, July 2011
The article assesses the impact of three International Financial Reporting Standards on companies, shareholders and investors: IFRS 10 on consolidated financial statements, IFRS 11 on joint arrangements and IFRS 12 on disclosures of interests in other entities. It argues that IFRS 10 may have little impact, except in specific sectors, such as the fund management industry, and on special purpose entities.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email, post or fax.


Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your new UK GAAP questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

Questions on IFRS 10 that we've dealt with recently include:

  • Do I need to prepare consolidated financial statements for these entities?
  • Am I eligible for an exemption in preparing consolidated financial statements?
  • Regarding control of an entity achieved in stages, how to account at each stage and at what point do I prepare consolidated financial statements?
  • How do I consolidate accounts for group entities with different year ends?

Find out more about the Technical and ethics advisory helpline, including our opening hours.


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