The Impact of Approved Accounting Standard AASB 1024 “Consolidated Accounts” on the Information Included in Consolidated Financial Statements

Pramuka, Bambang Agus

The International Journal of Accounting and Business Society
Vol 3, No 1 (1995): The International Journal of Accounting and Business Society

The  intent  of  consolidated  financial  statements  is  to  provide meaningful, relevant,  useful,  and reliable  information about the operations of a  group  of companies.  In  compliance  with  AASB  1024  ’Consolidated Accounts’,  and  AAS  24  Consolidated  Financial  Reports’, a  parent  entity now  has  to  include  in  its  consolidated  financial  statements  all  controlled entities,  regardless of their  legal  form  or the  ownership  interest  held.  The new  Standard  also  provides  a  new  style  of  consolidated  financial statements format, which requires an increased disclosure of outside equity interest (OEI,  formerly minority  interest),  especially  in  the  Balance  Sheet. The purpose of this study is to determine the impact of AASB 1024 on the consolidated financial statements of effected companies.  Examination  of the  financial  statements  of 52  companies  reveals that:  (1) the  adoption  of AASB  1024 (and AAS 24) did significantly alter the structure and  format of the basic  financial  statements,  especially the  Balance  Sheet  in terms of disclosing the OEI; and (2) the adoption of AASB  1024 (and AAS 24) had no significant impact on the consolidated financial figures.