This free, guided checker walks your finance team through the key decision points for IFRS 10 Different Reporting Periods and Consolidation Lag. Answer a few questions to see the likely treatment and the evidence to document.
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This tool is a high-level IFRS screening aid for general information only and is not accounting, audit or legal advice. Conclusions require entity-specific evidence and judgement - confirm the treatment with your advisor.
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IFRS 10.B92 requires the parent and its subsidiaries to use financial statements with the same reporting date, with the subsidiary preparing additional financial information as of the parent's date unless impracticable. Only when that is impracticable does IFRS 10.B93 permit using the subsidiary's most recent statements, adjusted for significant intervening transactions and limited to a three-month gap.
Standard same-date consolidation applies without reporting-lag adjustments (IFRS 10.B92).
Official guidance: IFRS issued standards
IFRS 10.B93 limits the difference between the subsidiary's reporting date and the consolidated reporting date to no more than three months, and requires the length of the reporting periods and the date gap to be consistent from period to period. Larger gaps require changing the subsidiary's year-end or preparing additional financial information as of the parent's date under IFRS 10.B92.
Change the subsidiary's reporting date or prepare additional financial information as of the parent's date; IFRS 10.B93 caps the permissible difference at three months.
Official guidance: IFRS issued standards
Common reasons include local statutory filing deadlines, regulatory requirements, or historical acquisition timing; document the business rationale for audit and disclosure support.
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Official guidance: IFRS issued standards
IFRS 10.B93 requires adjustments for material transactions, other events, and economic conditions between the subsidiary balance sheet date and the consolidated reporting date.
Search the intervening period for significant transactions and events before consolidating; IFRS 10.B93 requires adjustment for their effects.
Official guidance: IFRS issued standards
Adjustments may include major acquisitions or disposals, debt restructuring, impairment triggers, dividend declarations, and significant foreign exchange movements in the lag period.
Post the IFRS 10.B93 lag-period adjustment entries in the consolidation workbook before group close.
Official guidance: IFRS issued standards
Immaterial intervening events may be disclosed without adjustment; apply group materiality policy consistently across subsidiaries with different reporting dates.
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Official guidance: IFRS issued standards
IFRS 10.B87 requires consistent accounting policies on consolidation; align subsidiary policies to group policies before recording lag-period adjustments.
Conform the subsidiary's accounting policies to group policies as IFRS 10.19 and IFRS 10.B87 require before recording lag adjustments.
Official guidance: IFRS issued standards
IFRS 10.B94 requires attribution of comprehensive income to NCI after consolidation adjustments including lag-period entries affecting the subsidiary's results.
Recalculate the IFRS 10.B94 NCI attribution after lag-period adjustments to the subsidiary's profit or loss and OCI.
Official guidance: IFRS issued standards
Adjusting and non-adjusting events between subsidiary date and group authorization may require further adjustment or disclosure in consolidated financial statements.
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Official guidance: IFRS issued standards
Disclose that subsidiary reporting dates differ from the parent, the length of the difference, and the nature of material adjustments made for the intervening period.
Add the IFRS 12.11 disclosure of the subsidiary's reporting date and the reason for the difference to the consolidation note.
Official guidance: IFRS issued standards
Maintain a rollforward from subsidiary close to group close showing each lag adjustment, elimination entry, and NCI allocation for audit trail support.
Complete the lag-period reconciliation supporting each IFRS 10.B93 adjustment before the group financial statements are authorized.
Official guidance: IFRS issued standards
Confirm whether lag adjustments and disclosures are complete for all subsidiaries with non-aligned reporting dates within the three-month tolerance.
Finalize consolidation with the IFRS 10.B93 lag adjustments and the IFRS 12.11 reporting date disclosure. Complete the IFRS 10.B93 lag adjustment workpapers before group close.
Official guidance: IFRS issued standards
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