Chapters 2 and 3 apply to consolidated statements with the adjustments their nature requires. Assets and liabilities, income and expenditure of consolidated undertakings are incorporated in full. The book value of shares in subsidiaries is set off against the share of their capital and reserves at the date of first consolidation (or, where national law allows, against identifiable net assets at acquisition), with differences allocated to the related balance sheet items so far as possible and the remainder shown as goodwill, the goodwill calculation and significant changes explained in the notes, any netting of positive and negative goodwill analysed, and negative goodwill released to profit only in line with Chapter 2. Shares held by outsiders appear as non-controlling interests in the balance sheet and their share of profit or loss separately in the profit and loss account. Intra-group debts and claims, income and expenditure, and profits and losses included in asset book values are eliminated so the group reads as a single undertaking.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.