AASB 10 Consolidated Financial Statements Aus4.1-Aus4.2: Australian modifications to the exemption: tier and sector combinations that may still use it, and the ultimate Australian parent that must consolidate when legislation requires compliant statements (or, for AusCF entities, when the parent or group is a reporting entity)

What does Aus4.1-Aus4.2 require?

Even without an IFRS-compliant higher parent, a parent meeting the first three tests may skip consolidation where its ultimate or intermediate parent publishes consolidated or fair-value statements and the two entities are both not-for-profit entities that report under Australian Accounting Standards, both use Simplified Disclosures, or the parent uses Simplified Disclosures under a not-for-profit higher parent. Overriding the exemption, the ultimate Australian parent must consolidate its subsidiaries whenever legislation requires it to prepare statements complying with Australian Accounting Standards or accounting standards, unless it is an investment entity that must carry every subsidiary at fair value. For AusCF entities, the trigger is that the parent, the group, or both are reporting entities.