Consolidating subsidiaries with different year ends
Therefore you need to : After we have completed all steps or consolidation procedures, we can add up all the combined numbers with our adjustments and thus we arrive at consolidated statement of financial position.You can revise all the steps and formulas in Excel file that you can download at the end of this article.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.Therefore, when a group controller calls you every five minutes to remind you the consolidation package, you’ll know why!
The FASB's new consolidation standard amends the current consolidation guidance.
Measure NCI at its proportionate share of Baby’s net assets.
Please note here that in the above statements of financial position, .
Mommy has owned 80% of Baby’s share and therefore, non-controlling interest owns .
Recognize it with minus, as we are crediting equity with non-controlling interest.