ACCOUNTING FOR CONSOLIDATION OF FINANCIAL REPORTS

Abstract

Abstract. The exposure and necessity of performing consolidated calculations
is a critical issue in modern financial reporting. For consolidation purposes, it is
necessary to define theoretically a group of enterprises as well as connections among
enterprises within a group. In order to highlight the importance of the following
elements, a collective balance weakness must be introduced: group share and other
reserves, intragroup receivables and liabilities, intragroup incomes and expenditures.
The majority of the paper is about a method of capital consolidation for subsidiary
companies using the acquisition method. Business Combinations were defined in
accordance with IFRS 3 and the basic requirements for carrying out the acquisition
method were also examined.