This course explains the steps for the preparation of consolidated financial statements. The course will provide details regarding the preparation of the following parts :
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.
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:
During the presentations there is audio and on going calculations and indications
This video states the business transactions of each entity (Parent Company and Subsidiary Company) the group structure.
Detailed transactions for each entity have been uploaded.
A short video explaining the basic consolidation steps
This video explains what financial information you need to obtain before the consolidation.
All the financial information have been uploaded.
This video explains the calculation of Net Assets at the time of acquisition.
This video explains the calculation of goodwill at the time of acquisition.
Method 1: Consolidation method regarding the Statement of Financial Position
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)
Explain how to prepare the consolidated Trial Balance before the consolidation adjustments.
The consolidated Trial Balance was uploaded.
This video explains the calculation of goodwill and the relevant adjusting entry.
This video explains the calculation of post acquisition profit that belong to the Non Controlling Interest (NCI) and the relevant adjusting entry.
This video explains the inter-company balances elimination adjusting entry.
This video explains the inter-company transactions elimination adjusting entry.
This video explains how you use the consolidated Trial Balance in order to prepare the Statement of Comprehensive Income
This video explains how you use the consolidated Trial Balance in order to prepare the Statement of Financial Statement
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.
A short review of the final Consolidated Financial Statements (extract)
The final Consolidated Financial Statements have been uploaded.
I am an experienced and qualified accountant member of ACCA and a holder of 4 year bachelor degree in Economics. I have extensive experience as financial auditor and in preparation of financial statements under IFRs . In addition I worked as a chef accountant for an investment firm.
Throughout my working experience and training I am able to advise and help you in various finance and accounting topics (i.e. building an efficient internal control, business plans and feasibility studies, accounting, vat and taxation etc)