New trends in consolidation – challenging the changes of new IFRS rules

Abstract

In 2011, the consolidation rules changed repeatedly and substantially in IFRS. In earlier years, consolidation regulations have been modified many times, changing the impact of transactions with entities covered by the scope of consolidation, and that of the transactions with non-controlling interests, but in 2011 less technical, but rather significant changes took place, which altered the scope of consolidation. The purpose of this paper is to describe the comparison of changes with earlier regulations, and to examine how the financial statements of a group of companies would be modified as a result of these changes, and also to explore what effect this change makes on the financial indicators of a group of companies. It is shown that the financial statements of a group of companies may change substantially even if no modification occurs in the group of companies, and only the modification of the rules is executed. The paper points out the outstanding fact that as a result of the revised regulations, the con solidated financial statements are to be assessed from a different perspective, because the so far unambiguous rules which we have become accustomed to for years have been overwritten, and hence the liquidity, solvency and profitability of a consolidated group of companies may change significantly vis-a-vis the earlier years.