AASB 10 Consolidated Financial Statements 19-21,B86-B88: Consolidation procedures: combine like items, eliminate the parent's investment against its share of equity, remove intragroup balances and transactions in full, apply uniform policies, and include a subsidiary from the date control is gained to the date it is lost

What does 19-21,B86-B88 require?

Group statements add together, line by line, the parent's and subsidiaries' assets and liabilities, equity, income and expenses, and cash flows, cancel the parent's carrying amount of each investment against its share of the subsidiary's equity (goodwill follows AASB 3), and strip out in full every intragroup balance, income, expense and cash flow, including unrealised profits in assets such as inventory and plant; an intragroup loss may signal an impairment, and AASB 112 deals with temporary differences that elimination creates. Where a group member uses different accounting policies for like items, its numbers are adjusted to group policies. A subsidiary's income and expenses enter the group from the date control begins until it ends and are based on the asset and liability amounts recognised at acquisition, so post-acquisition depreciation reflects acquisition-date fair values.