Consolidating income statements sex dating in shamrock florida
If an entity owns 100% of another entity it will usually have control.
When preparing consolidated financial statements: Profits/losses (including unrealised gains and losses) made after acquisition that are shown in the subsidiary reserves can be included in the consolidated statement of comprehensive income and in reserves in the consolidated statement of financial position.
They have now been included in F1 as an introduction to consolidated financial statements in preparation for the F2 exam.
The F1 syllabus excludes non-controlling interests, so all subsidiaries must be 100% owned by the parent entity. The syllabus includes associated entities but we will not be able to consider them in this article.
Debit Credit Consolidated revenue: 90Consolidated cost of sales: 90Consolidated cost of sales: 30Consolidated sundry current assets (inventory): 30(iii) Interim dividend paid by YCancel the other income item in X against the dividend paid by Y, then ignore in the financial statements as it has no effect.
The F1 syllabus specifies that you should be able to prepare a consolidated statement of financial position and a consolidated statement of comprehensive income for a group in relatively straightforward circumstances.
Questions could be set requiring either one or both of these consolidated statements.
X group consolidated statement of comprehensive income USD000Revenue (910 390-90 [w4ii]) 1,210Cost of sales (461 171-90 [w4ii] 30 [w4ii] 24 [w2]) 596 614Expenses (110 43) (153)461Finance cost (30 22) (52)409Taxation (43 12) (55)Profit for the year: 354X group - consolidated statement of financial position as at 31 March 2010USD000Non-current assets Goodwill [W3] 114Property, plant and equipment(1210 700 126 [w2] -24 [w2]) 2,0122,126Current assets Sundry assets(1,780 620-30 [w4ii] 20 [w4i]) 2,3904,516Equity and reserves Ordinary shares: 2,000Retained earnings [W5] 5262,526Current liabilities Trade payables(1,630 360) 1,9904,516 Conclusion If you follow this approach to the preparation of consolidated financial statements you should have no problem with the F1 questions and will be well prepared for the consolidated financial statements on F2.
Consolidated financial statements combine the financial statements of separate legal entities controlled by a parent company into one set of financial statements for the entire group of companies.