Group Accounting

Preface 7

 1 Introduction 9

1.1 What is group accounting? 12

1.2 Why group accounting? 16

1.3 The history of group accounting 21

1.4 Regulation 21

1.5 Accounting issues when consolidated 
 financial statements are prepared  24

 2 Definitions and principles 29

2.1 Definition of group and exemptions from 
 requirements for group accounting 31

2.2 Large or small group according to ÅRL’s definition 34

2.3 Reporting date 39

2.4 Measurement rules 40

2.5 Deferred tax 42

 3 Consolidated financial statements 51

3.1 Shares in subsidiaries 53

3.2 Intragroup transactions and outstanding balances  58

3.3 The group’s equity 91

 4 Business combinations 109

4.1 Acquisitions of subsidiaries 112

4.2 Subsequent reporting 138

4.3 Non-controlling interest 152

4.4 Business combinations and equity 165

 5 Significant influence and joint control 189

5.1 Associated companies and joint arrangements 191

5.2 Step acquisitions and divestments of group companies 209

 6 Foreign currency 235

6.1 The subsidiary’s local currency is the functional currency 238

6.2 The parent company’s presentation 
 currency is the functional currency 242

6.3 Currency translation of acquired subsidiary 246

6.4 Effects on the income statement and balance sheet 252

 7 Preparation of financial statements 263

7.1 Financial statements in IFRS groups 266

7.2 Financial statements in K3 groups 275

7.3 Cash flow statements 276

7.4 Work process 280

 8 Solutions 295

Index 339