Consolidated financial statements

SUBJECT	IFRS	US GAAP
Consolidated financial statements
Definition of subsidiary	Based on voting control or power to govern. The existence of currently exercisable potential voting rights also needs to be taken into consideration.	Controlling interest through majority ownership of voting shares or by contract. Consolidate variable interest entities (VIEs) in which a parent does not have voting control but absorbs the majority of losses or returns.
Special purposes entities (SPEs)	Consolidate where the substance of the relationship indicates control.	Consolidate SPEs if consolidation requirements for VIEs are met. To avoid consolidation, the SPE must be a qualifying SPE.
Non-consolidation of subsidiaries	Dissimilar activities or temporary control are not a justification for non-consolidation.	Only if control does not rest with the majority owner and the owner is not the primary beneficiary of a VIE.
Definition of associate	Based on significant influence: presumed if 20% interest or participation in entity's affairs.	Similar to IFRS.
Presentation of associate results	Use equity method. Show share of post-tax result.	Similar to IFRS.
Disclosures about significant associates	Give detailed information on significant associates' assets, liabilities, revenue and results.	Similar to IFRS.
Presentation of joint ventures	Both proportional consolidation and equity method permitted.	Equity method is required except in specific circumstances.