Acta academica karviniensia 2015, 15(4):18-27 | DOI: 10.25142/aak.2015.039

THE ADOPTION OF IFRS 10 AND ITS IMPACT ON THE SCOPE OF CONSOLIDATION

Tereza Gluzová
University of Economics in Prague, Faculty of Finance and Accounting, Department of Financial Accounting and Auditingu, Winston Churchill Square 4,130 67Prague 3, Czech Republic, Email:xglut00@vse.cz

Consolidated financial statements present aggregated information for a group formed by the parent company and its subsidiaries. The existence of control is the most important condition to determine the relationship between companies within the group. This article focuses on the adoption of a novelised control concept introduced by IFRS 10. Companies quoted on Prague and Warsaw stock exchanges were chosen to illustrate the impact of IFRS 10. The article provides an analysis of consolidated financial statements in a year of the adoption of IFRS 10 and a year immediately preceding. Summarized findings reveal whether IFRS 10 had a material impact on consolidated financial statements.

Keywords: consolidated financial statements, control concept, financial reporting, IFRS
JEL classification: M41

Received: December 3, 2015; Accepted: March 23, 2016; Published: December 30, 2015  Show citation

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Gluzová T. THE ADOPTION OF IFRS 10 AND ITS IMPACT ON THE SCOPE OF CONSOLIDATION. Acta academica karviniensia. 2015;15(4):18-27. doi: 10.25142/aak.2015.039.
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