On consolidation, intra-group transactions, balances and unrealised profits are eliminated; non-controlling interests in subsidiaries are shown separately. TFRS 10 sets out the concept of control and TFRS 12 the disclosures.
Consolidated financial statements are also important when assessing the audit requirement criteria at group level.
Source: TFRS 10
Related terms
SubsidiaryAn entity controlled by another entity (the parent).Non-controlling interestsThe equity in a subsidiary not attributable, directly or indirectly, to the parent.Group auditThe audit of the consolidated financial statements of a group made up of more than one component (subsidiary, branch, associate).AssociateAn entity over which the investor has significant influence but not control or joint control.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.
Last updated: October 22, 2026 · This definition is for general information only.