Part III

Consolidating and Investing


In this part . . .

Lots of companies just stand alone; but sometimes a company buys a controlling stake in another company or simply invests funds in another organisation. This makes life a little trickier because the company needs to account for these sorts of investments in its financial statements.

In this part of the book, I examine the concept of consolidated financial statements (in other words where two, or more, sets of financial statements are combined) and the situations that arise when consolidated financial statements are required. I also look at some of the more complicated consolidation issues, including when a parent company sells off one (or more) of its subsidiary companies. I then move on to consider associates and joint ventures, and how you account for these.

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