Consolidation involves taking multiple accounts or businesses and combining the information into a single point.
In financial accounting, consolidated financial statements provide a comprehensive view of the financial position of both the parent company and its subsidiaries, rather than one company's stand-alone position.
IFRS 10 Consolidated Financial Statements outlines the requirements for the preparation and presentation of consolidated financial statements, requiring entities to consolidate entities it controls.
Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee.
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