Control is the basis for consolidation; it can exist without a voting majority through contracts, potential voting rights or de facto power. Controlled entities are consolidated as subsidiaries.
Source: TFRS 10
Related terms
ConsolidationCombining the financial statements of a parent and the subsidiaries it controls as if they were a single economic entity.SubsidiaryAn entity controlled by another entity (the parent).Parent companyAn entity that controls one or more entities (subsidiaries) and prepares the group financial statements.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: October 31, 2026 · This definition is for general information only.