Consolidating foreign subsidiaries ifrs
Because the parent company and its subsidiaries form one economic entity, investors, regulators, and customers find consolidated financial statements helpful in gauging the overall position of the entire entity.There are primarily three ways to report ownership interest between companies.Companies can often use the word consolidated loosely in financial statement reporting to refer to the aggregated reporting of their entire business collectively.
Public companies usually choose to create consolidated or unconsolidated financial statements for a longer period of time.
Apparently it seems that all unlisted companies with a foreign subsidiary are exempt from preparing consolidated financial statements for the financial year 2014-15.
However, on a plain reading, it is not completely clear whether the exemption is available if a company has at least one foreign subsidiary along with Indian subsidiaries, or will be available if a company has only foreign subsidiaries but no Indian subsidiaries.
Consolidated financial statements report the aggregate reporting results of separate legal entities.
The final financial reporting statements remain the same in the balance sheet, income statement, and cash flow statement.