Principles of Consolidated Financial Statement Acc to IFRS
Executive Summary
International Financial Reporting Standards (IFRS) is governed by a set of principles, which came into effect in the year 2005, and determine how consolidated financial statements are prepared by holding companies residing in the EU. Consolidated financial statements are combined financial statements of both a holding company and its subsidiary. This research paper will focus on the principles that govern the creation and presentation of consolidated financial statements by individual company groups residing in the EU. Previous researches have postulated that presentation of financial statements in a consolidated form aids in creating outlook at both company levels i.e. holding ...