Consolidation Questionnaire
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ScribdTranslationsQUESTIONNAIRE ON CONSOLIDATED FINANCIAL STATEMENTS
LUIS ALFONSO RAMOS PERDOMO
UNIVERSITY OF THE AMAZON
FACULTY OF ACCOUNTING, ECONOMIC AND ADMINISTRATIVE SCIENCES
PUBLIC ACCOUNTING PROGRAM
IN SEMESTER
Florencia-Caquetá
2019
QUESTIONNAIRE
What are consolidated financial statements?
They are the financial statements that present the financial situation, net profit or loss, the
variations in the equity and consolidated cash flows of an economic entity
formed by the controlling entity and its subsidiaries, also referred to as controlled.
IFRS 10 defines it as a presentation of financial information such as the results of
operations, equity changes, financial situation, cash flow of a parent entity and its
subordinated or dominant entity, controlling and the subordinated or controlled as if they were one.
2- WHAT IS THE PURPOSE OF CONSOLIDATED FINANCIAL STATEMENTS?
The consolidated accounts must provide a true image of the financial and operational situation.
of the group of companies. To do this, it will generally require a complex process in some cases
eliminate and in others merge the individual financial statements of each individual company in the
proportion in which the parent company owns the subsidiaries. The guiding principle of the financial statements
consolidated is that of the principle of the 'single entity'. The objective of the financial statements
consolidated means showing the functioning of the group as if it were a single entity. This
It means that all intragroup transactions and intragroup balances must be eliminated from one another.
consolidated financial statements would be counting these balances twice. The consolidated statements
they aim to show the state of the equity situation, the results, and the financial situation
of an economic group as if it were a single owner and the controlled subsidiaries were branches.
Additionally, it seeks to recognize the participation of minority third parties in the controlled entities.
3- ACCORDING TO IFRS FOR SMEs IN WHICH SECTION IS IT REGULATED?
In the IFRS for SMEs known in Colombia as decree 3022 issued in the year 2013,
Section 9 is responsible for consolidated and separate financial statements. This section
define the circumstances under which an entity applying this Standard presents financial statements
consolidated and the procedures for the preparation of those statements, in accordance with this Standard.
It also includes a guide on separate financial statements and combined financial statements, if applicable.
prepared in accordance with this Standard.
4- WHAT IS THE PROCEDURE FOR THE CONSOLIDATION OF THE STATES
FINANCIAL?
The consolidated financial statements present the financial information of a group as if it were
will be treated as a single economic entity. When preparing the consolidated financial statements, an entity:
It will combine the financial statements of the parent company and its subsidiaries line by line, adding
the items that represent assets, liabilities, equity, income, and expenses of similar content.
(b) it will eliminate the book value of the parent company's investment in each subsidiary along with the
portion of the equity belonging to the parent company in each of the subsidiaries.
(c) will measure and present the non-controlling interests in the results of subsidiaries
consolidated for the period reported separately from the holdings of the
owners of the holding company. IFRS FOR SMEs—2015 49 IFRS Foundation
(d) will measure and present the non-controlling interests in the net assets of the subsidiaries
consolidated separately from the participation in the equity of the shareholders of the parent company.
Non-controlling interests in net assets consist of: (i) the amount of the
non-controlling interest at the date of the initial combination, calculated in accordance with the
Section 19 Business Combinations and Capital Gains; and (ii) the portion of the non-controlling interest
controller of changes in equity from the date of the combination.
5- WHAT INFORMATION SHOULD BE DISCLOSED IN THE FINANCIAL STATEMENTS
CONSOLIDATED?
The following information must be disclosed in the consolidated financial statements:
the fact that the statements are consolidated financial statements
(b) the basis for concluding that control exists when the controlling entity does not own, directly or indirectly,
through subsidiaries, more than half of the voting power;
(c) any difference in the date on which the financial statements of the parent company are reported
and its subsidiaries used for the preparation of the consolidated financial statements; and
(d) the nature and scope of any significant restriction, (for example, such as those resulting from
of agreements on borrowed funds or requirements from regulators) on the capacity of
the subsidiaries to transfer funds to the parent company in the form of cash dividends or
loan refunds.
In addition to the information requirements to be disclosed in Section 11, a controlling entity
it will reveal the book value of investments in unconsolidated subsidiaries.
6- WHAT IS HOLDING?
A holding is understood as an economic organization that controls a series of companies that
they guarantee control over the different factors of a market. Holdings are considered as
a form of business integration and collaboration, similar to what we know in Colombia as
Business group or economic group. In Colombia, the commercial code does not make reference.
Al Holding is a figure not contemplated by our commercial legislation. Just as it is not.
considered the Economic Group. Our legislation only considers the business group, which does not
prevents the creation of a Holding, in which case it is akin to what our legislation contemplates.
about this type of business integration figures. Forming a Holding has great benefits in
the extent to which it manages to control important sectors of the same market, which ensures that the
companies that are part of the Holding have access to raw materials, transport, financing, etc.
7- WHAT IS A CONTROLLER?
It is the one that controls one or more subsidiaries, that is, it exerts control over the life of another called
controlled. Control is manifested in the aspects of organization and functioning, and especially
in decision making. It is a company that owns 25% or more of the ordinary shares of another
A holding company is also called a parent company or principal.
8- WHAT IS A SUBSIDIARY?
Also called a subsidiary company, it is the company that is controlled by another, known as
holding company. It is a company whose majority of common shares (more than 50%) is owned by
another company, that is to say they hold the majority of voting shares of a corporation.
9- WHAT IS UNDERSTOOD BY CONTROL IN THE CONSOLIDATION OF STATES
FINANCIAL?
It is presumed that control exists when the controller possesses, directly or indirectly through
subsidiaries, more than half of the voting power of an entity. This presumption can be disregarded in
exceptional circumstances, can clearly demonstrate that this possession does not constitute control.
Control also exists when the controlling party owns half or less of the voting power of a
entity, but has: (a) power over more than half of the voting rights, under an agreement
with other investors; (b) power to direct the financial and operational policies of the entity, according to
a legal or statutory provision, or an agreement; (c) power to appoint or revoke the majority of the
members of the board of directors or equivalent governing body, and the entity is
controlled by it; or (d) power to cast the majority of votes at council meetings
administration or equivalent governing body and the entity is controlled by it.
Control can also be obtained if there are options or convertible instruments that are
exercisable at that moment or if there is an agent with the ability to direct the activities to
benefit of the controlling entity.
10- WHAT IS THE DIFFERENCE BETWEEN SEPARATE FINANCIAL STATEMENTS AND THOSE
INDIVIDUAL FINANCIAL STATEMENTS?
The financial statements of an entity that does not have a subsidiary are not financial statements.
separated. Therefore, an entity that is not a controlling entity but is an investor in an associate or
have a stake in a joint venture, will present its financial statements in accordance with
Section 14 or Section 15, as applicable. You may also choose to submit financial statements.
separated. Information to be disclosed in the separate financial statements. When a parent company, a
investor in an associate or a participant with a 'stake in a Controlled entity in a way
jointly prepare separate financial statements, will reveal: (a) that the statements are financial statements
separate, and (b) a description of the methods used to account for investments in
subsidiaries, jointly controlled entities and associates, and will identify the financial statements
consolidated or other main financial statements with which they are related
In Colombia, it is required for all entities to also present financial statements.
separated, a financial statement is only requested when it is an economic group; the rules only require the
consolidated, but in Colombia the parent company and all entities of the group must present their
the parent company will present consolidated and separate financial statements, it is
the financial state of the parent company before consolidation.
The individual financial statement is the statement of an entity that does not control any other, and is not
It is necessary to say it at the time of presenting it because it will be understood that they are individual.
BIBLIOGRAPHY
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Section 9 of decree 3022 of 2013 IFRS for SMEs.
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