IFRS 10 - Consolidated Financial Statements

IFRS 10 establishes principles for presenting consolidated financial statements when a parent controls one or more subsidiaries. Control exists when the investor has power, exposure to variable returns, and the ability to influence those returns.

IFRS 10 explains when an investor controls an investee and must consolidate, based on power, exposure to variable returns, and ability to use power to affect returns.

- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.

- Example: When preparing year-end reporting, management applies **IFRS 10 - Consolidated Financial Statements** to determine the correct IFRS treatment and disclosures.

- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.