Consolidating financial statements eliminating entries

Organizing Your Information Setting Up a Worksheet Combining Financial Statements Eliminating Duplicate Values Community Q&A Many large companies are partially or entirely made up of smaller companies that they've acquired throughout the years.After their acquisitions, these smaller companies, or subsidiaries, may have remained legally separate from the large corporation, or parent company.

Let’s be more practical today and learn some advanced accounting techniques.

After summaries of standards related to consolidation and group accounts, I’d like to show you how to prepare consolidated financial statements .

I’ll do it on a case study, with explaining what I do and why.

If you don’t like reading, you can skip to the end of this article and watch my video.

If you’d like to revise a theory first, then please read my summary of IFRS 3 Business Combinations and IFRS 10 Consolidated Financial Statements, both of them contain video in the end.

Here’s the question: Mommy Corp has owned 80% shares of Baby Ltd since Baby’s incorporation.

Below there are statements of financial positions of both Mommy and Baby at 31 December 20X4.

Prepare consolidated statement of financial position of Mommy Group as at 31 December 20X4.

Measure NCI at its proportionate share of Baby’s net assets.

Tags: , ,