Insitutional Background
What are the 3 conditions for the preparation of consolidated accounts?
The parent undertaking:
a) Has a majority of the shareholders' or members' voting rights in a subsidiary undertaking; or
b) Has the right to appoint or remove a majority of the members of the administrative, managment or supervisory body of another (subsidiary) undertaking and is at the same time a shareholder in or member of that undertaking; or
c) Has the right to exercise a dominant influence over an (subsidiary) undertaking of which it is a shareholder or member, pursuant to a contract entered into with that undertaking or to a provision in its memorandum or articles of association, (...)
When is the company mandated to present IFRS financial statements as a group?
1) Public listing of securities on a regulated market (no difference between equity and/or bond issuers).
2) Parent undertaking.
What are the three pillars of IFRS in Europe?
Standard Setting
Endorsement
Enforcement
The international accounting standards can only be adopted if:
- They are not contrary to the principle and,
- Are conductive to the European public good and,
- They meet the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.