Two revenue figures under the same company name can describe different scopes. Check whether the statements are consolidated or separate before concluding that a number is wrong.
Looking at a group as one economic entity
IFRS 10 uses control as the basis for consolidation and describes statements that present a parent and its subsidiaries as one economic entity. Separate statements do not add subsidiaries’ revenue line by line in the same way. Simply adding every related company misses both the control question and transactions inside the group.
A fictional example: why 100 + 40 is not 140
Assume a parent reports revenue of 100, including 20 sold to a subsidiary. The subsidiary’s revenue of 40 is entirely from outside customers. Ignore all other transactions and adjustments.
| Consolidated revenue bridge | Amount |
|---|---|
| Parent revenue | 100 |
| Subsidiary revenue | +40 |
| Eliminate internal sales | −20 |
| Revenue from external customers | 120 |
All amounts use the same arbitrary currency unit. Adding separate sales would count an internal group transaction as if it were an additional sale to an outside customer. Actual consolidation has other eliminations and adjustments; this exercise isolates only the sales duplication.
Group profit and the parent owners’ share differ
If fictional consolidated profit is 12 and the non-controlling share is 3, the amount attributable to the parent’s owners is 9. FirmLens uses total consolidated net income. Dividing that total by the parent’s shares would overlook attribution and share-count considerations required for an EPS calculation.
Carry the scope with the number
- The consolidated or separate statement label
- The subsidiaries included, and changes through acquisitions or disposals
- Whether profit is total or attributable to the parent’s owners
- A comparable prior period and its source document
Korean profiles use OpenDART consolidated records, identified as CFS. Missing consolidated figures are not filled with separate, OFS, amounts.