Australia consolidation adjustment entry

Nov 19, 2022
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Hey mates! I'm working toward CPA and got kind of confused about consolidation adjustment entry particularly under IFRS. I followed some vids about how to do a consolidation on Youtube by a US-based tutor, which I assume it's following US GAAP.
Here's my problem, assuming a parent company acquired 90% share of a subsidiary company in this financial year, to be simplified, no profit is generated by the sub after acquisition, and the goodwill is applied to the parent only. According to what I learned from the videos, after combining, in the consolidated balance sheet, I should eliminate all the sub's equity account numbers, and enter the result of non-controlling interest in equity (sub's equity*10%) into an account called "non-controlling interest in equity".
However, when I was reading a similar question and its answer under IFRS rules, I found in the example above, only 90% of all the sub's equity account numbers would be eliminated and it's not needed to transfer the remaining 10% of sub's every equity account numbers into a specific account.
Therefore, I feel confused whether the former consolidation adjustment process is not allowed under IFRS? Thanks for any kindly help!


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May 27, 2022
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United States
If I recall correctly, IFRS 10 describes the rules for consolidating subsidiaries into parents. And they do the same thing that US GAAP does with respect to non-controlling interests:

Non-controlling interests (NCIs)

A parent presents non-controlling interests in its consolidated statement of financial position within equity, separately from the equity of the owners of the parent. [IFRS 10:22]

A reporting entity attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests. The proportion allocated to the parent and non-controlling interests are determined on the basis of present ownership interests. [IFRS 10:B94, IFRS 10:B89]

The reporting entity also attributes total comprehensive income to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. [IFRS 10:B94]

Now that was from December 2020, so unless IFRS 10 has changed or there's been something that supersedes it, I think the video's method applies under IFRS, too.

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