Consolidating companies with different year ends
The accounting standard setters consolidation guidance determines whether your business consolidates another legal entity or not.This guidance may impact your company’s accounting for current and new investments.Please read our cookie notice for more information on the cookies we use and how to delete or block them.The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected.Control requires exposure or rights to variable returns and the ability to affect those returns through power over an investee.IFRS 10 was issued in May 2011 and applies to annual periods beginning on or after 1 January 2013.Rather, the earnings or losses of such entities should be reflected in the registrant's financial statements on the equity method of accounting.However: A difference in fiscal periods does not of itself justify the exclusion of an entity from consolidation.
Consider significant business and operational implications of accounting conclusions, including how a current or potential investment will impact balance sheet and income statement line items, key ratios, financial statement metrics and debt covenants.Also - does it matter if this is first time we're preparing under IFRS? The multinational technology corporation Apple Inc. has been a participant in various legal proceedings and claims since it began operation and, like its competitors and peers, engages in litigation in its normal course of business for a variety of reasons.Our Jersey parent company has a year end of 30 June. Both entities are moving to a year end of 31 December.Here is what I think the individual accounts will look like...(please correct me if I'm wrong! Parent - Current year - 1 July 2014 - 31 December 2014 (6 months) Comparatives - 1 July 2013 - 30 June 2014 (12 months) Sub - Current year - 1 April 2014 - 31 December 2014 (9 months) Comparatives - 1 April 2013 - 31 March 2014 (12 months) What about the group accounts?!!