Question

Explain to your manager how a parent should consolidate its subsidiary’s financial statement.

plz write about that.

plz explain it.

tks

Answer 1

revenues and expenses (both current and past) of the parent are included within reported figures.

revenues and expenses of the subsidiary are consolidated from the date of the acquisition forward within the worksheet consolidation process.

The operations of the subsidiary are only applicable to the business combination if earned subsequent to its creation

if it results in complete ownership, the acquisition method allocates the fair value of the consideration transferred to the separately recognized assets acquired and liabilities assumed based on their individual fair values