Group accounts: Difference between revisions
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imported>Doug Williamson m (Spacing and Wiki numbering 27/8/13) |
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''Financial reporting''. | ''Financial reporting''. | ||
Consolidated group accounts involve treating the net assets and activities of subsidiaries controlled indirectly by the holding (or parent) company as if they were part of the holding company’s own net assets and activities. Appropriate proportionate interests in associated undertakings and joint ventures are also incorporated into the group accounts. | |||
Consolidated group accounts involve treating the net assets and activities of subsidiaries controlled indirectly by the holding (or parent) company as if they were part of the holding company’s own net assets and activities. | |||
Appropriate proportionate interests in associated undertakings and joint ventures are also incorporated into the group accounts. | |||
The preparation of consolidated group accounts involves two stages: | The preparation of consolidated group accounts involves two stages: | ||
#''Aggregation'' to add up the individual assets and liabilities of all of the companies in the group. | |||
#''Consolidation adjustments'' to remove, for example, intercompany trading and indebtedness from the consolidated figures for the group. | |||
== See also == | == See also == | ||
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* [[Parent company]] | * [[Parent company]] | ||
* [[Subsidiary]] | * [[Subsidiary]] | ||
Revision as of 11:31, 27 August 2013
Financial reporting.
Consolidated group accounts involve treating the net assets and activities of subsidiaries controlled indirectly by the holding (or parent) company as if they were part of the holding company’s own net assets and activities.
Appropriate proportionate interests in associated undertakings and joint ventures are also incorporated into the group accounts.
The preparation of consolidated group accounts involves two stages:
- Aggregation to add up the individual assets and liabilities of all of the companies in the group.
- Consolidation adjustments to remove, for example, intercompany trading and indebtedness from the consolidated figures for the group.
