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  • FAC3704-Simple Groups - Comprehensive Example

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    Amé Mouton
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    The document provides steps for consolidating the financial statements of a parent company and its subsidiary. It outlines 7 steps: 1) identifying the parent and subsidiary, 2) preparing standalone statements, 3) combining statement line items, 4) eliminating intercompany balances, 5) preparing pro-forma financials at the acquisition date, 6) preparing pro-forma financials since acquisition to beginning of year, and 7) posting consolidation journals to the financial statements. The goal is to produce consolidated financial statements for the parent company and its wholly owned subsidiary.

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    The document provides steps for consolidating the financial statements of a parent company and its subsidiary. It outlines 7 steps: 1) identifying the parent and subsidiary, 2) preparing standalone statements, 3) combining statement line items, 4) eliminating intercompany balances, 5) preparing pro-forma financials at the acquisition date, 6) preparing pro-forma financials since acquisition to beginning of year, and 7) posting consolidation journals to the financial statements. The goal is to produce consolidated financial statements for the parent company and its wholly owned subsidiary.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    22 views10 pages

    FAC3704-Simple Groups - Comprehensive Example

    Uploaded by

    Amé Mouton
    The document provides steps for consolidating the financial statements of a parent company and its subsidiary. It outlines 7 steps: 1) identifying the parent and subsidiary, 2) preparing standalone statements, 3) combining statement line items, 4) eliminating intercompany balances, 5) preparing pro-forma financials at the acquisition date, 6) preparing pro-forma financials since acquisition to beginning of year, and 7) posting consolidation journals to the financial statements. The goal is to produce consolidated financial statements for the parent company and its wholly owned subsidiary.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 10

    GROUP FINANCIAL

    REPORTING
    Simple Group – Comprehensive
    Example

    Simple Groups – Comprehensive Example

    PRITT LTD
    READ THE QUESTION
    Simple Groups – Comprehensive Example

    PRITT LTD
    CONSOLIDATION STEPS 1 - 3

    Step 1
    Step 2

    Step 3
    Simple Groups – Comprehensive Example

    PRITT LTD
    ADD PRITT LTD + STICK LTD -
    CONSOLIDATION STEP 4

    Write out the format of SFP


    Add Pritt +Stick (Assets + Liabilities)
    Write out the format of SPL&OCI
    Add Pritt +Stick

    Write out the format of SOCIE


    Add Pritt +Stick (Equity)
    Simple Groups – Comprehensive Example

    PRITT LTD
    INTERCOMPANY ELIMINATIONS –
    CONSOLIDATION STEP 5

    Working 1 – Intercompany eliminations


    Simple Groups – Comprehensive Example

    PRITT LTD
    PRO-FORMA – AT ACQUISITION –
    CONSOLIDATION STEP 6

    Working 2 – At acquisition
    Simple Groups – Comprehensive Example

    PRITT LTD
    PRO-FORMA SINCE ACQUISITION TO BOY
    – CONSOLIDATION STEP 6

    Working 2 – Since Acquisition to BOY


    Simple Groups – Comprehensive Example

    PRITT LTD
    PRO-FORMA CY
    – CONSOLIDATION STEP 6

    Working 2 – CY
    Simple Groups – Comprehensive Example

    PRITT LTD
    POSTING JOURNALS TO THE FINANCIAL
    STATEMENTS – CONSOLIDATION STEP 7

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