Getting to Grips with More Complex Consolidation Issues
In This Chapter
Handling the disposal of a subsidiary company
Knowing what to do when ownership changes
Working out goodwill
Delving into deemed disposals
Getting to grips with step acquisitions
Consolidated financial statements combine a parent company’s financial results with the results of the other company (or companies) that it owns or of which it’s the major shareholder. The idea is that the consolidated statements show the results of the group as a single reporting company.
Consolidated financial statements are quite complicated. If you’re unfamiliar with consolidations or your knowledge is a bit rusty, I suggest you read Chapter 10, which explains the basics, before diving into this one.
The purpose of this chapter is to get to grips with some of the complexities of consolidation. I examine what happens when a parent company decides to sell a subsidiary, and take a look at some of the issues that arise during ...