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Consolidation of financial statements

Never Give up... (student)     16 September 2020

Never Give up...
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If a single shareholder (natural person) has 2 different company (100% share in each company) and company has no link with each other except common shareholder.
does company 1 accounts need to be consolidated with company 2 as per IFRS. 


yasaswi gomes   16 September 2020

yasaswi gomes

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Here, in consolidation, the financial statements are prepared between a parent company and a subsidiary. The owner having a share or not is irrelevant because the owner is separate and entity is separate- business entity concept. Based on this, the owner has his returns from company, company has its earnings from customers. So, it can consolidate if a company invested in company 2, but not when a person as an individual invests in company 2.

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