Consolidation

Introduction As businesses expand through acquisitions, mergers, and investments in subsidiaries, preparing a single set of financial statements becomes increasingly important. Investors, lenders, regulators, and other stakeholders need to understand the financial position and performance of the entire corporate group—not just each legal entity individually. This is where consolidated financial statements come into play. Consolidation is often considered one of the most chall

Introduction When a company acquires control over another company, it is required to present the financial position and performance of the group as if it were a single economic entity. This process is known as consolidation. The governing standard is IFRS 10 – Consolidated Financial Statements, which establishes the principles for determining control and preparing consolidated financial statements. This guide explains the consolidation process step-by-step and provides a prac