by Ekrem Duman | Jun 19, 2026 | Accounting, Consolidation & Group Reporting
⚡ TL;DRIAS 28 governs investments in associates and joint ventures using the equity method. An associate is an entity over which the investor has significant influence — usually a 20% to 50% holding — without control. Under the equity method, the investment starts at...
by Ekrem Duman | Jun 19, 2026 | Accounting, Consolidation & Group Reporting
⚡ TL;DRIAS 21 governs the effects of changes in foreign exchange rates. It introduces the concept of functional currency, sets rules for translating foreign currency transactions, and prescribes how to translate the results of foreign operations into the group’s...
by Ekrem Duman | Jun 19, 2026 | Accounting, Consolidation & Group Reporting
⚡ TL;DRGoodwill is the premium an acquirer pays over the fair value of the identifiable net assets it buys, representing expected synergies and intangibles that cannot be recognised separately. Under IFRS it is not amortised but tested for impairment at least...
by Ekrem Duman | Jun 19, 2026 | Accounting, Consolidation & Group Reporting
⚡ TL;DRIFRS 3 governs business combinations using the acquisition method: identify the acquirer, determine the acquisition date, recognise and measure the identifiable assets acquired and liabilities assumed at fair value, and recognise goodwill (or a bargain purchase...
by Ekrem Duman | Jun 19, 2026 | Accounting, Consolidation & Group Reporting
⚡ TL;DRIFRS 10 defines control as the basis for consolidation: an investor controls an investee when it has power over it, exposure to variable returns, and the ability to use its power to affect those returns. All controlled entities are consolidated line by line,...
