Presentation on consolidated financial statements journals

The accounting for this investment depends on the level of control of the parent company in the subsidiary. The consolidated method of accounting applies when the parent company controls the subsidiary, which means it has direct operational control in the subsidiary's activities. Consolidated statements combine the income statements, balance sheets and statement of cash flows of the parent and subsidiary companies into a single set of statements.

Presentation on consolidated financial statements journals

The results of the circularisation were found to be consistent with the representations made by management relating to legal, regulatory compliance matters; reading Group legal reports, discussing open legal matters with the Group general counsel and regulatory teams — and where relevant — reading external legal opinions obtained by management.

Based on the evidence obtained, while noting the inherent uncertainty with such legal, regulatory and tax matters, we accepted the level of provisioning at 31 March We evaluated the capitalisation policies and assessed the timeliness of the transfer of assets under construction by agreeing the date that depreciation commenced to the date that the asset is ready for use.

IFRS 10 — Consolidated Financial Statements

We found no exceptions from the sample of items tested. Our detailed substantive testing of the determination of estimated asset useful lives and residual values identified no exceptions.

We further tested whether approved asset life revisions were appropriately applied to the fixed asset register. Accuracy of share of results from associates, given the recent acquisition of a stake in Safaricom Public Limited Company With the acquisition of an effective investment of The estimates and assumptions made by management in relation to the transaction related to whether the Group has control or significant influence over Safaricom.

Management also applied various judgements to determine the fair value of all identifiable assets and liabilities in relation to the investment made in Safaricom, with the assistance of external experts in valuation.

Various changes were also required to existing systems to accommodate the equity accounting of the Safaricom results on consolidation. For these reasons this was considered a matter of most significance to our audit. Refer to the Significant accounting policies for Investments in associates and joint venturesCritical accounting judgements including those involving estimations as well as note 12 — Investment in associate.

In order to assess whether the Group had control or significant influence over the investment, we made use of our accounting technical expertise, and obtained an understanding of, and assessed various internal accounting memoranda prepared by management, supported by contractual arrangements, to assess the conclusions reached by management and the judgement applied as part of this process.

We also assessed the appropriateness of the policies applied by management in the preparation of the consolidated financial statements, and based on the results of our work performed, we accepted the accounting treatment applied. Based on the evidence obtained, we accepted the values that management determined.

We assessed the consolidation process followed by management to recognise the equity accounted earnings of Safaricom, including testing of certain consolidation and elimination journals processed. We found no exceptions during this assessment. Other information The directors are responsible for the other information.

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Our opinion on the consolidated financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the consolidated financial statements The directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Presentation on consolidated financial statements journals

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit.

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.IFRS 10 Consolidated Financial Statements establishes principles for the presentations and preparation of consolidated financial statements when an entity controls one or more other entities.

The standard was published in May and is effective from 1 January (1 January for EU preparers). statements of financial position as of June 30, and , and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements.

components of income (e.g., Lipe ), suggesting differing presentation in financial statements may be warranted.

Second, they have been increasing, quite dramatically, in frequency and. AbstractThe consolidated audit report is considered among the most used tools of financial communication. It is a written message that conveys the opinion of the independent auditor on the consolidated financial statements.

Presentation on consolidated financial statements journals

Theoretically, the same report can reinforce the mechanisms and systems of governance of corporate groups. The consolidated audit report must be readable by all .

Tracking intercompany transactions is perceived as one of the most common problems with financial consolidation Intercompany transactions are transactions that happen between two entities of the same company. Not adjusting intercompany transactions results in consolidated financial statements that do not offer a true and fair view of the group’s financial situation.

Marks will be lost if journals are not presented in a clear and professional manner (i.e. poor or unclear presentation can include showing the debit entry on one page but the credit entry on another, or not clearly distinguishing between debit and credit entries).

Examples of Consolidation in Advanced Accounting |