Subject The article describes basic requirements of IFRS 10 Consolidated Financial Statements from the standpoint of the study of specifics of control assessment for consolidated financial statements formation. Objectives The purpose of the study is to develop a method to exercise a phased assessment of control when producing consolidated financial statements. Methods I developed methods for phased assessment of control using a flowchart. The latter enables to determine the availability of investor’s control over the investee. The assessment of control will be performed with simultaneous observance of the existence of powers in respect of the investee, investor's exposure to risk of changes in return on investment, and the possibility of using the powers to influence the amount of investor's return. Results The findings helped to develop a flowchart. It tests the assessment of control over the investee. I also examine the assessment criteria using practical materials. The findings may be useful for accountants involved in consolidated financial statements preparation, and for lectures and workshops on IFRS in educational institution. Conclusions and Relevance The paper explores the requirements of IFRS 10 related to assessment of investor's control over the investee, and identifies the most important criteria. The results of the study will enable to simplify the procedure and understand the terminology of the standard.
Keywords: control, privilege, principal, agent, voting power
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