IFRS 10 - Consolidated Financial Statements is a standard issued by the International Accounting Standards Board (IASB) that establishes principles for presenting consolidated financial statements when an entity has control over one or more other entities. Under IFRS 10, these entities are considered subsidiaries, and the entity in control is a parent company. Consolidated financial statements provide a complete overview of the financial position, performance, and cash flows of the parent company and its subsidiaries, presenting them as a single economic entity.\n\nThe standard defines the concept of control as requiring the ability to direct the relevant activities of another entity, having exposure or rights to variable returns from its involvement with the other entity, and the ability to use its power to affect those returns. For example, if Company A has enough voting rights to control the decisions of Company B, then Company A must consolidate Company B in its financial statements according to IFRS 10.\n\nAdditionally, IFRS 10 specifies how intercompany transactions, balances, income, and expenses are eliminated in the consolidated financial statements. All entities applying IFRS must ensure compliance with IFRS 10 when they prepare and present their financial reports.