advanced-ifrs-consolidated-statements-review

name	advanced-ifrs-consolidated-statements-review
description	Use when preparing or reviewing consolidated financial statements under IFRS 10, IFRS 11, IFRS 12, IAS 28 and related standards, including control, joint-control, associates, NCI, intercompany elimination, disclosure completeness, IFRS 18 presentation, and reviewer advice.
status	active
metadata	{"portable":true,"category":"06-close-consolidation-and-reporting","compatible_with":["claude-code","codex"]}

Advanced IFRS Consolidated Statements Review

Use When

Use for group reporting, acquisition or disposal periods, subsidiaries, structured entities, investment entities, joint arrangements, associates, non-controlling interests, intercompany elimination, group disclosures, and review of a draft consolidated set under current full IFRS.

Do Not Use When

Do not force consolidation from ownership percentage alone, classify a joint arrangement from legal form alone, edit local ledgers to make group balances agree, or present a final compliance conclusion without source and human review.

Prerequisites

• doctrine/accounting-finance-doctrine.md and the existing consolidation-and-intercompany skill.
• IFRS 10, IFRS 11, IFRS 12, IAS 28 and IFRS 18 source-register entries and Digital Research verification manifest.
• Entity hierarchy, contracts, voting rights, board/control evidence, local trial balances, intercompany match reports, policy/judgement logs and draft statements/notes.

Inputs

Artifact	Produced by	Required?	Validation
Group structure and control memo	Group controller	Required	Ownership, voting rights, decision rights, returns, dates and exceptions present.
Entity trial balances and policies	Local finance teams	Required	Period, currency, close status, policies and sign-off present.
Intercompany match and elimination pack	Consolidation team	Required	Counterparty, document, currency, period, match status and elimination mapping present.
Interests-in-other-entities inventory	Group controller	Required	Subsidiary, JV, associate, structured entity, restrictions and commitments captured.
Draft consolidated statements and notes	Reporting team	Required	Statements, IFRS 18 mapping, IFRS 12/7 disclosures and reconciliations available.
Reviewer route	Doctrine owner	Required	Group controller, IFRS reviewer and auditor liaison roles assigned.

Workflow

1. Confirm reporting basis, group reporting date, reporting currency, accounting policies, reporting-date alignment and consolidation scope.
2. Assess control for each investee: power over relevant activities, exposure or rights to variable returns, and ability to use power to affect returns. Consider substantive rights, potential voting rights, agency and structured entity facts; document the conclusion and reassessment triggers.
3. Apply the investment-entity exception only after confirming the definition and consequences; route subsidiaries held for investment purposes through the applicable fair-value and disclosure analysis.
4. Classify joint arrangements from contractual joint control and rights to assets/obligations for liabilities (joint operation) or rights to net assets (joint venture). Assess significant influence and equity-method inputs for associates and joint ventures under IAS 28.
5. Combine like items for parent and subsidiaries using consistent policies; eliminate investment in subsidiary against subsidiary equity, intragroup balances, transactions, income, expenses, cash flows and unrealised profit. Preserve local ledgers and link every elimination to source records.
6. Calculate NCI, ownership changes, acquisition/disposal effects, foreign- operation translation and post-acquisition movements with separate workpapers.
7. Reconcile group trial balance to all four statements, IFRS 18 categories and subtotals, cash-flow classification, segment information and notes.
8. Complete IFRS 12 disclosures for nature, risks and effects of interests; include restrictions, commitments, summarised information and NCI where applicable. Link financial-instrument risks to IFRS 7.
9. Log unmatched balances, policy differences, missing evidence, judgemental classifications and unreviewed estimates; do not hide them in suspense.

Decision Rules

Condition	Decision
Power, variable returns and ability to affect returns are all evidenced	Consolidation route under IFRS 10, subject to exceptions.
Ownership percentage is the only evidence	Control conclusion is not complete; escalate.
Unanimous consent is required for relevant activities	Joint-control route; classify from rights and obligations.
Rights are to net assets	Joint-venture/equity-method route, not proportionate consolidation by default.
Significant influence is evidenced but control is not	IAS 28 associate route and IFRS 12 disclosures.
Intercompany difference is unresolved	Keep on exception report; do not edit local ledger or use an unexplained plug.
Local policies or reporting dates differ	Adjust through approved consolidation layer and retain evidence.
IFRS 18 period	Route group statement presentation, MPMs and comparatives through the IFRS 18 skill.

Outputs

Artifact	Consumed by	Acceptance evidence
Control and consolidation-scope memo	Group controller and IFRS reviewer	Investee-by-investee conclusion with evidence, dates and exceptions.
Consolidation adjustment register	Group ledger and auditors	Elimination, NCI, policy, FX and other adjustments link to source records.
Group trial balance and statement tie-out	Reporting owner	Local TBs plus adjustments/eliminations reconcile to statements.
IFRS 12/7 disclosure matrix	Notes reviewer and audit committee	Nature, risk and effect disclosures are complete or exception-owned.
Unresolved-issue and reviewer register	Release owner	Blockers, owners, due dates and release state are explicit.

Acceptance Evidence

• references/consolidation-review-matrix.md is completed for every investee and consolidation run.
• references/interests-in-other-entities-disclosure-workpaper.md supports IFRS 12 and related risk disclosures.
• examples/control-nci-joint-arrangement-review.md covers control/NCI, joint-control and unresolved-evidence paths.
• Local ledgers are unchanged; elimination journals are traceable and reversible.
• Group statements cross-foot and reconcile to local TBs, eliminations and notes.

Evidence Produced

Category	Artifact	Format	Example
Correctness	Consolidation review matrix and adjustment register	Markdown workpapers using the references/ templates	docs/ifrs-workpapers/group-review-<period>.md
Data safety	Group-source and elimination trace	Markdown reconciliation pack	docs/ifrs-workpapers/group-trace-<run>.md
Release evidence	IFRS 12/7 disclosure exception register	Markdown table	docs/ifrs-workpapers/group-disclosures-<period>.md

Anti-Patterns

• Consolidating every investee because ownership exceeds a threshold.
• Using legal ownership instead of control, contractual rights or relevant activities.
• Proportionately consolidating a joint venture without a supported conclusion.
• Editing subsidiary ledgers or hiding unmatched balances in suspense.
• Omitting NCI, structured-entity risk, restrictions or commitments from notes.
• Producing a group statement that does not reconcile to eliminations and local TBs.

Files

• references/consolidation-review-matrix.md
• references/interests-in-other-entities-disclosure-workpaper.md
• examples/control-nci-joint-arrangement-review.md

Review Metadata

Field	Value
Owner role	Group reporting and consolidation reviewer
Reviewer roles	IFRS technical reviewer; group controller; auditor liaison
Last reviewed	2026-08-27
Next review due	2026-12-31
Release state	Active advanced doctrine route; final group reporting remains reviewer-gated
Caveat	Control, joint-control, NCI, valuation and disclosure conclusions depend on entity-specific evidence.

Last reviewed: 2026-08-27. Next review due: 2026-12-31.