This is most easily explained as a parent company issuing financial statements that include other companies under it’s ownership. Rules exist governing what entities may consolidate other entities into financials, as well as the methodology in which they do this. For example, transactions which take place between these entities are often eliminated to prevent things such as the double-counting of revenues. Disclosures must be made as to the relationship between the parent and subsidiary as well.
IAS are principles based standards, rather than strict rules based standards that govern international accounting. IAS standards differ from IFRS standards in that they were introduced prior to 2001, whereas IFRS were produced after this date by the IASB, or the International Accounting Standards Board. When determining the hierarchy of these, the IAS is considered to be the building blocks in which the newer and more relevant IFRS are founded and therefore IFRS is more authoritative when these conflict.
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