Český finanční a účetní časopis 2012(1):52-63 | DOI: 10.18267/j.cfuc.302

Typology of Concepts of Consolidated Financial Statements

Vladimír Zelenka
Doc. Ing. Vladimír Zelenka, Ph.D. - docent; Katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <vzelenka@vse.cz>.

Good understanding of theoretical concepts of consolidation of financial statements is essential for correct interpretation of consolidated figures. There are seven principal concepts of consolidated accounts indicated in this paper, from proprietary concepts, through parent entity concepts to economic entity concepts. The principal criterion for the classification of indicated concepts of consolidated accounts are: extent of net assets of subsidiary added to the net assets of parent entity; extent and character of acquisition difference; presentation of noncontrolling interests; measurement of net assets of subsidiary at the date of acquisition. Current IFRS (IFRS 3, IAS 27 and IFRS 10) are based on economic entity concept. Current Czech accounting standards are based on limited economic entity concept.

Keywords: Concepts of Consolidated Accounts; Non-controlling interest; Consolidated financial statements; Goodwill; IFRS.
JEL classification: M41

Published: March 1, 2012  Show citation

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Zelenka, V. (2012). Typology of Concepts of Consolidated Financial Statements. Czech Financial and Accounting Journal, 2012(1), 52-63. doi: 10.18267/j.cfuc.302
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