ICAG || CORPORATE REPORTING (CR) || INTRO TO BASIC CONSOLIDATION + 5 KEY WORKINGS

Standards: IFRS 3 - Business Combination IFRS 10 - Consolidated Financial Statements IAS 27 - Separate Financial Statements This instructional tutorial provides a comprehensive guide to consolidated financial reporting, defining consolidation as the process of combining the individual financial statements of a parent and its subsidiaries into a single group entity. The tutorial also outlines a precise hierarchy for business acquisitions based on share proportion, distinguishing between a Subsidiary (over 50% ownership), an Associate (20–50% ownership), and Financial Instruments (IFRS 9) (under 20%). Central to the lesson is a structured methodology involving 5 essential Workings: determining the Group Structure (W1), preparing a Net Asset Schedule of Subsidiary (W2), calculating Goodwill (W3), assessing Non-controlling Interest (NCI) (W4), and computing Group Retained Earnings (W5). Through practical examples of fair value adjustments and impairment losses, the text serves as a technical roadmap for students to master the complex adjustments and eliminations required to produce an accurate Consolidated Statement of Financial Position.