Preparation of Consolidated Financial Statements (Basic)

Name: Preparation of Consolidated Financial Statements (Basic)
Rating: 3.9 (50 reviews)

In this video tutorial you will learn how you can prepare consolidated financial statements in real life.

Created byMichalis Iosif

Last updated 6/2017

English

What you'll learn

Understand the method regarding the preparation of the consolidated financial statements

Course content

10 sections • 18 lectures • 1h 33m total length

Introduction3:49
Introduction showing the consolidated financial statements that we are going to prepare at the end of this course.

Consolidation - Statement of Financial Position11:37
Method 1: Consolidation method regarding the Statement of Financial Position
Consolidation - Statement of Comprehensive income plus workings14:06
Method 1: Consolidation method regarding the Statement of Comprehensive Income
In addition this video explains:
a) The calculation of the group retained earning belong to the members of the parent company.
b)The calculation of the group retained earning belong to Non-Controlling Interest (NCI)

Preparing the consolidated Trial Balance5:35
Explain how to prepare the consolidated Trial Balance before the consolidation adjustments.
The consolidated Trial Balance was uploaded.
Adj Entry 1 - Calculation of goodwill5:35
This video explains the calculation of goodwill and the relevant adjusting entry.
Adj Entry 2 - Post acquisition profit for NCI2:21
This video explains the calculation of post acquisition profit that belong to the Non Controlling Interest (NCI) and the relevant adjusting entry.
Adj Entry 3 - Elimination of inter-company year end balances1:31
This video explains the inter-company balances elimination adjusting entry.
Adj Entry 4 - Elimination of inter-company transations1:53
This video explains the inter-company transactions elimination adjusting entry.

Covert consolidated TB to Consolidated Statement of Comprehensive Income5:33
This video explains how you use the consolidated Trial Balance in order to prepare the Statement of Comprehensive Income
Convert consolidated TB to Consolidated Statement of Financial Position8:03
This video explains how you use the consolidated Trial Balance in order to prepare the Statement of Financial Statement
Preparation of the Statement of Changes in Equity6:28
This video explains how you use the Consolidated Statement of Financial Position and the Consolidated Statement of Comprehensive Income in order to prepare the Consolidated Statement of Changes in Equity.
Final Consolidated Financial Statements ( Final Review)0:48
A short review of the final Consolidated Financial Statements (extract)
The final Consolidated Financial Statements have been uploaded.

Requirements

Accounting Knowledge (Understand how to prepare basic Financial Statements or at least how to prepare the balance sheet and Profit and Loss)

Description

This course explains the steps for the preparation of consolidated financial statements. The course will provide details regarding the preparation of the following parts :

Consolidated Statement of profit and loss and other comprehensive income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity

Note: Financial statements notes and cash flow are excluded.

You will learn from the beginning until to the end how you consolidate the financial figures fo two entities. In this course you will learn how the actual accountants prepare consolidated financial statements. The course explain the consolidation process for the following 2 scenarios.

You receive and consolidate the final financial statements (or management accounts) of 2 entities. (not happen in real life )
You receive and consolidate the final Trial Balances of the 2 entities. Then you use the consolidated TB for the preparation of the consolidated Financial Statements ( what happen in real life)

Our example is based on 2 companies. The 1st company purchased the 90% of the shares of the 2nd company. Both companies currency is the same. The 1st company sells products and the 2nd company sells services.

For our presentation I use the following:

PowerPoint
Excel
PDF
PC White Board
Writing tablet (perform calculation, highlight and draw during the presentations)

During the presentations there is audio and on going calculations and indications

Who this course is for:

Students studing accounting/finance
Employees working on accounting/finance department
Students/employees want to expand their accounting/finance kwoledge

Preparation of Consolidated Financial Statements (Basic)

What you'll learn

Explore related topics

Course content

Introduction1 lecture • 4min

Review the consolidated entities and the group structure1 lecture • 7min

Consolidation steps1 lecture • 1min

Step 1: Obtain the financial figures for the preparation of the consolidated FS1 lecture • 2min

Step 2: Calculation of net assets at the time of acquisition1 lecture • 9min

Step 3: Calculation of goodwill1 lecture • 3min

Step 4, 5, 6: Consolidation process (Financial Statements)1 lecture • 4min

Consolidation process (Financial Statements)2 lectures • 26min

Consolidation process (Trial Balances)5 lectures • 17min

Preparation of Consolidated Financial Statements using consolidated TB4 lectures • 21min

Requirements

Description

Who this course is for: