Subsidiary Exclusion
A subsidiary is excluded from consolidation only when the reporting framework permits; compare IFRS and FRS 102 treatment of unconsolidated subsidiaries.
Subsidiary, holding company, pre-acquisition profit, and consolidation-exemption terms used in group statements.
Subsidiaries, Holding Companies, and Exemptions is the financial-statement landing page for consolidation methods, consolidation adjustments, subsidiaries, holding companies, exemptions, pre-acquisition profits, and unconsolidated subsidiaries. It keeps related terms in one branch so readers can move from a broad statement question to the article that owns the evidence.
Use this page when a group-reporting method or subsidiary treatment changes which entities are included in the statements. Use the parent Consolidation Methods, Adjustments, and Subsidiaries page when you need the broader reporting map. For an individual decision, confirm the statement line, disclosure note, reporting period, measurement basis, and calculation before relying on the term.
Use the table below to move from this landing page into the term page that best matches the statement evidence.
| Term | Use it for |
|---|---|
| Exclusion of Subsidiaries from Consolidation | Compare the narrow IFRS and FRS 102 rules for leaving a controlled entity outside line-by-line group consolidation. |
| Exemptions from Preparing Consolidated Financial Statements | Compare parent-level relief under IFRS 10, FRS 102, and current UK small-group rules. |
| Pre-Acquisition Profits | Separate acquisition-date reserves from adjusted post-acquisition profit when calculating goodwill, group retained earnings, and non-controlling interest. |
Adding a newly consolidated subsidiary can increase revenue and debt even if the parent company did not change its stand-alone operations.
Subsidiary Reporting content is educational and does not provide personalized investment, tax, legal, accounting, audit, valuation, or securities advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A subsidiary is excluded from consolidation only when the reporting framework permits; compare IFRS and FRS 102 treatment of unconsolidated subsidiaries.
A consolidation exemption can relieve a qualifying parent from preparing group statements; eligibility differs under IFRS 10, FRS 102, and company law.
Pre-acquisition profits are earnings accumulated before control is obtained; they affect acquisition-date net assets and goodwill, not post-acquisition group profit.