This free, guided checker walks your finance team through the key decision points for IFRS 10 Uniform Accounting Policies in Consolidation. 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.B87 requires use of uniform accounting policies on consolidation; differences arise from pre-acquisition policies, local practice, or recent group policy changes not yet adopted by subsidiaries.
Uniform policies already applied across the group; no IFRS 10.B87 conformity adjustment is required, but retain the assessment as support.
Official guidance: IFRS issued standards
Document group policies for revenue, leases, financial instruments, depreciation, inventory, employee benefits, and tax to identify gaps against subsidiary local policies.
Issue the group accounting policy manual before completing the policy alignment analysis, so differences can be measured against a consistent benchmark (IFRS 10.B87; IAS 8.13).
Official guidance: IFRS issued standards
Prioritise differences with the largest balance sheet or profit or loss impact when planning consolidation adjustment work under IFRS 10.B87.
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Official guidance: IFRS issued standards
Circulate group policy checklist to subsidiary finance teams and reconcile responses to local statutory accounts before posting consolidation adjustments.
Complete the subsidiary policy questionnaire to identify all material differences before posting consolidation adjustments (IFRS 10.B87).
Official guidance: IFRS issued standards
Adjustments typically reclassify or remeasure subsidiary balances as if group policies had always applied, with corresponding equity or retained earnings effects where retrospective adjustment is impracticable.
Calculate and post the policy alignment entries in the consolidation workbook to restate subsidiary balances to group policy (IFRS 10.B87).
Official guidance: IFRS issued standards
When subsidiaries change policies to align with the group, apply IAS 8 retrospective adjustment unless impracticable, in which case adjust prospectively with disclosure.
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Official guidance: IFRS issued standards
IFRS 10.B94 requires NCI to share in subsidiary results after all consolidation adjustments including uniform policy alignment entries.
Recalculate the NCI allocation to include the profit or loss and equity effects of the policy alignment entries (IFRS 10.B94).
Official guidance: IFRS issued standards
Temporary differences arising from policy alignment adjustments require deferred tax recognition in consolidation following IAS 12 principles.
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Official guidance: IFRS issued standards
Apply group materiality consistently; document immaterial differences to support the conclusion that no adjustment is required under IFRS 10.B87.
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Official guidance: IFRS issued standards
Where practicable, align subsidiary statutory accounts to group policies to reduce future consolidation adjustments and improve local audit efficiency.
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Official guidance: IFRS issued standards
Workpapers should show subsidiary balance, adjustment amount, adjusted balance, and NCI share for each material policy difference.
Prepare policy adjustment workpapers with a full audit trail before group close so each entry can be evidenced (IFRS 10.B87).
Official guidance: IFRS issued standards
Confirm whether all material policy differences have been adjusted on consolidation with NCI allocation and deferred tax effects complete.
Finalize the consolidation with uniform policy adjustments and monitor the subsidiary adoption timetable (IFRS 10.B87). Complete the remaining policy alignment entries before group authorization (IFRS 10.B87).
Official guidance: IFRS issued standards
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