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  Preparation of a Group Income Statement

Introduction to Preparation of a Group Income Statement

The group income statement follows very identical principles to those which apply to the statement of financial position. These are as follows:

  • Such as items are added together. For instance, the revenue of each subsidiary is added to that of the parent company to discover group revenue.
  • All the amounts appearing within each heading in the income statements of subsidiaries are involved in the total, even where they are not wholly owned subsidiaries.

For instance, the revenue of a subsidiary that is 60 % owned through the parent is involved in full.

  • The interests of outside shareholders (non-controlling interests) are separately recognized in the direction of the bottom of the income statement.

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