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On what basis may a subsidiary be excluded from consolidation?

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Question added by Shihab Abbas , Senior Auditor , Allied Accounting & Auditing
Date Posted: 2015/04/14
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

The subsidiary has been acquired only so that it can be re-sold within a short time.

Muhammad Rizwan
by Muhammad Rizwan , Accountant , Howdy Restaurant

Subsidiary excluded from being consolidated, if the subsidiary is investment entity according to the IFRS10, it measure at fair value through profit and loss According to IFRS9

Mohammed Ismael
by Mohammed Ismael , Finance Manager , confidintional

under IFRS5. Consolidation is not required where temporary control is

acquired because the subsidiary is held exclusively with a view to its

subsequent disposal in the near future.

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

You should not unify the company's consolidated financial statements in the following cases:       - It was a holding company controlled by a temporary subsidiary due to the purchase of the company has been only for the purpose of resale in the near future.       - If the company operates under strict restrictions, so long-term leads to weak ability to transfer funds to the holding company to a large extent           In these cases must be accountability for the companies as investments, according to International Accounting Standard came ninth and thirty Financial Instruments: Recognition and Measurement.

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