Consolidation and Control Issues for Non-Profit Organizations: Looking Beyond Ownership
For many non-profit organizations (NPOs), preparing consolidated financial statements is not always straightforward. Unlike the corporate sector, where ownership is often the determining factor, consolidation under IFRS 10 Consolidated Financial Statements is based on control. This distinction frequently creates challenges, particularly for organizations operating through foundations, charitable trusts, subsidiaries, or affiliated entities. In practice, one of the most common misconceptions is that an entity…