METHOD FOR SOLVING THE ICAN QUESTION


Now that you have been given a sort of an introduction on the process of how to prepare and present consolidated financial statements, let’s now walk hand in hand to solve the ICAN question on page 2. 

Before we continue, let me inform you that it is not only IAS 27, Consolidated and Seperate Financial Statements that is applicable to this consolidation problem but to do justice to it, there is the need to apply the principles of other standards such as IAS 1, Presentation of Financial Statements, IAS 21, The Effect of Changes in Foreign Exchange Rates, IAS 28, Investment in Associates, IAS 39, Financial Instruments: Recognition and Measurement, IAS 16, Property, Plant and Equipment and IFRS 3, Business Combination.

Therefore, as we go along I shall be making reference to the principles in the relevant standard(s) to that part of the question we are tackling at that particular instance. Please, equally note that necessary working note will be prepared and each working note will be numbered sequentially as note 1, note 2 etc.

To make solving this problem easy, I shall follow these processes or steps for each of the additional information in the question:

1.     Give a simple and straight-forward summary of the additional information.
2.     Provide explanations on what to do about the additional information using IFRS standard(s) that are applicable to it.
3.     Prepare the working note(s) for that additional information.

Now before we begin this quest into understanding the how of preparing consolidated statement of financial position using a problem-solving approach, please take 5 minutes to skim through the ICAN question on page 2, ICAN'S Corporate Reporting Question No.1.
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