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New trends in consolidation - challenging the changes of new IFRS rules
Periodica Polytechnica Social and Management Sciences
View Archive Info| Field | Value | |
| Title |
New trends in consolidation - challenging the changes of new IFRS rules
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| Creator |
Büdy-Rózsa, Ildikó
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| Subject |
quota consolidation; joint ventures; equity method; goodwill
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| Description |
In 2011, the consolidation rules changed repeatedly and substantially in IFRS. In earlier years, consolidation regulations have been modified many times, changing the impact of transactions with entities covered by the scope of consolidation, and that of the transactions with non-controlling interests, but in 2011 less technical, but rather significant changes took place, which altered the scope of consolidation. The purpose of this paper is to describe the comparison of changes with earlier regulations, and to examine how the financial statements of a group of companies would be modified as a result of these changes, and also to explore what effect this change makes on the financial indicators of a group of companies. It is shown that the financial statements of a group of companies may change substantially even if no modification occurs in the group of companies, and only the modification of the rules is executed. The paper points out the outstanding fact that as a result of the revised regulations, the con solidated financial statements are to be assessed from a different perspective, because the so far unambiguous rules which we have become accustomed to for years have been overwritten, and hence the liquidity, solvency and profitability of a consolidated group of companies may change significantly vis-á-vis the earlier years. |
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| Publisher |
Budapest University of Technology and Economics
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| Date |
2012-01-01
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| Type |
info:eu-repo/semantics/article
Peer-reviewed Article info:eu-repo/semantics/publishedVersion |
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| Format |
application/pdf
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| Identifier |
http://www.periodicapolytechnica.org/so/article/view/1564
10.3311/pp.so.2012-1.02 |
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| Source |
Periodica Polytechnica Social and Management Sciences; Vol. 20, No. 1 (2012); 11-22
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| Language |
eng
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| Relation |
http://www.periodicapolytechnica.org/so/article/view/1564/882
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| Rights |
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). As soon as the paper is accepted, finally submitted and edited, the npaper will appear in the "OnlineFirst" page of the journal, thus from this point no other internet-based publication is necessary
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