In this course, we learn what a group is and what consolidation entails in general. We look at IAS 27/IFRS 10 and IFRS 3 principles. IAS 27 used to be known as IAS 27 Consolidated and Separate Financial Statements. It was superseded by IAS 27 Separate financial statements on January 1, 2013. The old IAS 27 consolidation requirements are now included in IFRS 10 Consolidated financial statements. This course also covers IAS 28 Investments in associates and joint ventures and IFRS 3 Business combinations.

The course also covers fundamental consolidation issues related to the statement of financial position. The basic consolidated statement of profit or loss and other comprehensive income is considered in a separate course by the same tutor. First of all, however, we look at all the important definitions, which determine how to treat each particular type of investment in consolidated financial statements.

Course Key Concepts: Consolidation, Basic groups, Subsidiary and subsidiaries Associates Trade investment, Consolidated financial statements, Consolidated statement of financial position (CSFP).

Learning Objectives
  • Discover and define and describe a group.
  • Explore and critically explain the following in the context of group accounting:
    • Parent
    • Subsidiary
    • Control
    • Consolidated or group financial statements
    • Non-controlling interest
    • Trade/simple investment
  • Recognize the various forms of consideration transferred in the acquisition of a subsidiary including their accounting treatments.
  • Identify and calculate goodwill using the full goodwill method and describe its treatment including that of negative goodwill.
  • Discover and describe the components of and prepare a consolidated statement of financial position or extracts thereof, including the following adjustments:
    • Fair values
    • Intragroup trading
    • Unrealized profits
    • Acquisition partway through the year
  • Identify and discuss the treatment of simple investments.
Last updated/reviewed: March 19, 2024
Course Complexity: Foundational
Please go through the handout before you begin the video section of the course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Learning Objectives for Consolidation of Basic Groups: The SFP Side2:00
  What is a Group and Group Accounting33:10
  Further Concepts and Working30:18
  Types of Consideration Transferred10:20
  Intra Entity Trading28:24
  Acquisition Mid-Year29:58
  Fair Value Adjustments8:02
  Investments in Associates and Simple Investments24:26
  Consolidation of Basic Groups: The SFP Side2:46:38
  Slides: Consolidation of Basic Groups: The SFP SidePDF
  Consolidation of Basic Groups: The SFP Side Glossary/IndexPDF