IFRS 10 outlines the requirements for a parent to consolidate its subsidiaries and present consolidated financial statements. It defines the principle of control, establishes control as the basis for consolidation by means of a 4-step model and sets out how to apply the principle of control to identify whether an investor controls an investee, and therefore must consolidate the investee. IFRS 10 also sets out the accounting requirements for the preparation of consolidated financial statements and defines an investment entity together with the exceptions to consolidating particular subsidiaries of an investment entity.
• Describe the criteria for classification of financial instruments.
• Describe measurement bases for financial instruments.
• Describe, at a high level, the impact of classification and measurement requirement for companies in financial sector.
