A complete guide to financial consolidation under IFRS 10

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IFRS 10 is an accounting standard issued by the International Accounting Standards Board (IASB), providing guidance for multi-entities on maintaining compliance during financial consolidation. While it differs in some key areas from ASC 810 (the US GAAP accounting standard equivalent), both typically result in the same conclusions.  

The objectives of IFRS 10 for consolidated financial statements


To comply with IFRS 10, it’s critical to understand the objectives set out by the accounting standard. IFRS 10 establishes principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities.  

Here are the key objectives of IFRS 10 

  • Requires an entity (the parent) that controls one or more other entities (subsidiaries) to present consolidated financial statements. 
  • Defines the principle of control, and establishes control as the basis for consolidation; 
  • Sets out how to apply the principle of control to identify whether an investor controls an investee and must consolidate the investee. 
  • Sets out the accounting requirements for the preparation of consolidated financial statements. 
  • Defines an investment entity and sets out an exception to consolidating particular subsidiaries of an investment entity. 

Read the full blog for a complete guide to financial consolidation under IFRS 10. 

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