The objective of the consolidated financial statements is to show the position of the group as if it were a single economic entity, therefore:
Assets and liabilities of P and S are included in the consolidated statement of financial position
Income and expenses of P and S are included in the consolidated statement of profit or loss.
All the other comprehensive income of P and S is included in the consolidated statement of profit or loss and other comprehensive income showing other comprehensive income.
Intra-group balances are eliminated
The parent’s investment in each subsidiary is offset against the parent’s portion of equity of each subsidiary.