Principles of Group Accounting under IFRS
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More About This Title Principles of Group Accounting under IFRS


A professional perspective to implementing IFRS 10, 11, and 12

The new International Financial Reporting Standards (IFRS) 10, 11, and 12 are changing group accounting for many businesses. As business becomes increasingly global, more and more firms will need to transition using the codes and techniques described in Principles of Group Accounting under IFRS. This book is a practical guide and reference to the standards related to consolidated financial statements, joint arrangements, and disclosure of interests. Fully illustrated with a step-by-step case study, Principles of Group Accounting under IFRS is equally valuable as an introductory text and as a reference for addressing specific issues that may arise in the process of consolidating group accounts.

The new international standards will bring about significant changes in group reporting, and it is essential for accountants, auditors, and business leaders to understand their implications. Author Andreas Krimpmann is an internationally recognized authority on the transition from GAAP to IFRS, and this new text comes packaged with GAAP/IFRS comparison resources that will help make the changes clear. Other bonus resources include an Excel-based consolidation tool, checklists, and a companion website with the latest information. Learn about:

  • Definitions, requirements, processes, and transition techniques for IFRS 10, 11, and 12 covering group level accounting
  • Practical implementation strategies demonstrated through a clear case study of a midsize group
  • Key concepts related to consolidated financial statements, joint ventures, management consolidation, and disclosure of interests
  • Comparisons between GAAP and IFRS to clarify the required changes for international firms

Whatever stage of the consolidation process you are in, you will appreciate the professional perspective in Principles of Group Accounting under IFRS.


Andreas Krimpmann, Berlin, Germany, is a Certified Public Accountant and owner of Krimpmann MBA ▪ CPA, providing consulting and services in financial and management accounting. He is Head of the IFRS and Controlling working group of the Internationaler Controllerverein and Head of the IFRS-Practice Committee of the German CPA Society. Andreas is also an Associate Professor at Berlin universities (Beuth University of Applied Sciences and HTW University of Applied Sciences) for accounting, management accounting and taxes and teaches IFRS and group accounting at various training academies and educational institutions (e.g. Haufe Academy).


List of figures xiv

List of tables xvii

Preface xix

Introduction to the book xx

A The case study 1

1. About the group 1

2. Allocation of examples 1

B Legal requirements for consolidated financial statements 4

1. IFRS standards 5

2. Exemptions 18

3. Local accounting standards 19

4. Taxation 20

5. Definitions 21

C Definition of groups 22

1. The control concept 23

2. Joint control 28

3. Loss of control 31

4. Group compositions 33

5. Special cases 34

D Preparation of consolidated financial statements and annual reports 37

1. Lifecycle of subsidiaries 38

2. Structures 39

3. The preparation process 48

4. Organization 54

E Initial consolidation 55

1. Basics 56

2. Mergers and acquisitions 62

3. Purchase price allocation 66

4. Other aspects of purchase price allocations 94

5. Consolidation techniques 96

6. Special cases 107

F Subsequent consolidation 121

1. Basics 122

2. Subsidiary preparation 125

3. Equity consolidation 131

4. Debt consolidation 136

5. Consolidation of income and expenses 144

6. Unrealized profits 156

7. Non-controlling interests 170

8. Group-level transactions 173

9. Special cases 186

G Associated companies 213

1. Basics 214

2. Consolidation techniques 216

3. Treatment of losses 236

4. Impairments 237

5. Special cases 238

H Joint arrangements 242

1. Basics 243

2. Accounting and consolidation 246

3. Disposals / Deconsolidation 249

I Changes in control 253

1. Basics 254

2. The parent’s view 254

3. Increase in investments 255

4. Decrease in investments 266

5. Acquisitions and disposals without changes in control 275

6. Special cases 285

J Disposals and deconsolidation 288

1. Basics 289

2. Control 290

3. Deconsolidation techniques 291

4. Discontinued Operations 306

K Special areas 320

1. Currency translation of foreign operations 321

2. Deferred taxes in groups 334

3. Cash flow statements 344

4. Partnerships 350

5. Restructuring of groups 352

L Management consolidation 361

1. Basics 362

2. Business units 363

3. Projects and cost units 368

4. Dependency between management consolidations and consolidated financial statements 370

M Consolidated financial statements 371

1. Basics 372

2. Statements 372

3. Notes & group disclosures 373

4. Management report 377

Appendix I: Fair value measurement ccclxxix

1. History ccclxxix

2. Definition ccclxxx

3. Measurement ccclxxxi

4. Measurement techniques for selected assets and liabilities ccclxxxiii

Appendix II: IFRS - US-GAAP comparison ccclxxxv

Appendix III: IFRS ccclxxxviii

1. List of IFRS ccclxxxviii

2. IFRIC and SIC interpretations ccclxxxix

Reference list cccxci

Glossary cccxcii

Index cccxcvi