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Consolidated Financial Statements

Consolidated Financial Statements AASB 10 has a revised definition of control, this will help to all the entities to find out that control exists or not. Consolidated Financial Statements This will mostly help when the percentage is 50 % or less. This will note the direct activities which can affect the returns, rather than the ability to govern the operational or financial policies. Consolidated Financial Statements In the current state, this is used by IAS 27. In this the entities have to consider the rights and holdings of other stakeholders as a comparison to them, to find out that they have the necessary power for consolidation.

The proposal by IASB’s against the Investment entities is exposed here under AASB ED 220, in August 2011. ED 220 includes an Australian preface which notifies that there are a number of concerns which AASB already have with the International Accounting Standard ED. Consolidated Financial Statements There is no conceptual basis for providing that which entities are exempted from the consolidation activity.

Exposure Draft

This preface will also identify that which entities are going to be impacted by this. There is some also information which supported exception based fair value presentation of those entities which were controlled. The AASB is now started consideration to release the standard in November 2012 meeting and they also decided to proposed additional disclosures to accompany the new amendments by IASB. The additional disclosures are necessary to compensate the resulting loss by showing the value as investment entity standard will bring. Investment entities measures value fair value through profit and loss; they will not consolidate their financial statements. The ED (Exposure Draft) is available for comments by AASB’s until 29 March 2013. Entities have to prepare their financial statements in group form to show the overall group report, this will help the users to understand about the group and make their decision.