Consolidation procedures

Consolidation procedures
When preparing consolidated financial statements, an entity must use uniform accounting polices for reporting like transactions and other events in similar circumstances.intragroup balances and transactions must be eliminated. non controlling interests in subsidiaries must be presented in the consolidated stament financial position within equity, separately fromthe equity of the owners of the parent.
Changes in the ownership interests
Changes in a parent´s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiaryare equity transactions (ie transactions with owners in their capacity as owners).
Loss of control
If a parent loses control of a subsidiary, the parent:
(a)derecognises the assets and liabilities ofthe former subsidiary from the consolidated stament of financial position.
(b) recognize any investment retained in the former subsidiary at its fair value when the control is lost andsubsequently accounts for it and for any amounts owed by or to the former subsidiary in accordance with relevant IFRSs. That fair value shall be regarded as the fair value on initial recognition of a financialasset in accordance with IFRS 9 or, when appropriate, the cost in the initial recognition of an investment in an associate or joint venture.
(c) recognises the gain or loss associated with the lossof control attributable to the former controlling interest.
Disclosure
the disclosure requiriments for interests in subsidiaries are specified in the IFRS 12 disclosure of interests in otherentities.
tips.
Itis important that each and every one of the legal companies incorporated in colombiaand that already are applying international standards maintain a strict control andsomehow control the progress of such adaptation.


Procedimientos de consolidación

Al preparar estados financieros consolidados, una entidad deben utilizar políticas decontabilidad uniforme para reportar las...