Start When consolidating financial statements how do you use a worksheet

When consolidating financial statements how do you use a worksheet

Mommy has owned 80% of Baby’s share and therefore, non-controlling interest owns .

However, when you look at both parent and subsidiary as at 1 company, which is the purpose of consolidation, then you find out that there’s no transaction at all.

In other words, group has not performed any transaction from the view of some external user.

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.

It’s very easy when a parent (Mommy) and a subsidiary (Baby) use the same format of the statement of financial position – you just add Mommy’s PPE and Baby’s PPE, Mommy’s cash and Baby’s cash balance, etc. It’s a full IFRS learning package with more than 40 hours of private video tutorials, more than 140 IFRS case studies solved in Excel, more than 180 pages of handouts and many bonuses included.

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Of the handful of spreadsheets that are looked at in more detail, they are usually reviewed by their own authors and are almost never subject to a peer review, or by someone completely independent.