Methodology for Assessing Control in The Formation of Financial Statements of a Consolidated Business
Natalia Alekseevna Prodanova1, Liudmila Borisovna Trofimova2, Aleksandr Aleksandrovich Adamenko3, Elmira Arsenovna Erzinkyan4, Natalia Victorovna Savina5, Lyudmila Nikolaevna Korshunova6
1Natalia Alekseevna Prodanova, Plekhanov Russian University of Economics, Moscow, Russian Federation.
2Liudmila Borisovna Trofimova, Plekhanov Russian University of Economics, Moscow, Russian Federation.
3Aleksandr Aleksandrovich Adamenko, Kuban State Agrarian University named after I.T. Trubilin, Krasnodar, Russian Federation.
4Elmira Arsenovna Erzinkyan, State Academic University for Humanities (GAUGN), Moscow, Russian Federation.
5Natalia Victorovna Savina, Financial University under the Government of the Russian Federation, Moscow, Russian Federation.
6Lyudmila Nikolaevna Korshunova, Moscow University by S.U. Witte, Moscow, Russian Federation.
Manuscript received on 08 April 2019 | Revised Manuscript received on 17 May 2019 | Manuscript published on 30 May 2019 | PP: 2696-2702 | Volume-8 Issue-1, May 2019 | Retrieval Number: A1326058119/19©BEIESP
Open Access | Ethics and Policies | Cite | Mendeley | Indexing and Abstracting
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In order to develop the Russian consolidated statements, adapted to the new requirements of the international standard IFRS 10, the authors have conducted a study of its main requirements in relation to the assessment of control in the preparation of the financial statements of the consolidated business. Through the use of a methodology for testing investors for control over an investment object, the authors have developed a flowchart aimed at identifying the main criteria for control assessment. The testing performed is to help one choose the right solution for composing financial reports and either generate a consolidated company report controlled by the parent company, or compile reports using the equity method and so on. The research results can be used in the transformation of statements, as well as in the construction of consolidated financial statements generated in Russia in accordance with the requirements of IFRS.
Index Terms: IFRS 10, Consolidated Financial Statements, Control, Assessment, Privilege, Principal, Agent, Voting Right.
Scope of the Article: E-Business