AASB 127 notes that in preparing consolidated financial statements,an entity combines the financial statements of the parent and the subsidiaries line by line by adding together,in proportion to the degree of ownership,like items of assets,liabilities,income and expenses; but not equity balances:

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AASB 127 requires full consolidation of the financial statements of the parent and its subsidiaries, meaning 100% of the assets, liabilities, income, and expenses are combined, not in proportion to ownership.

AASB 127 Notes That in Preparing Consolidated Financial Statements,an Entity