Consolidation (1)

Consolidation (1) - Consolidation 1a-Show the results and...

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Consolidation 1a) -Show the results and financial position as if it was one single economic entity -This is called a group and will be made up of the parent and their subsidiaries 2a) -No, as these are made outside of the individual entity ledgers -They are written in a consolidation journal and then posted to a consolidation worksheet -Note that each new financial period where a new set of financial reports need to be prepared, a new consolidation worksheet is required -The consolidation worksheet provides the numbers that are used directly to construct the consolidated financial statements b) -No they will not -This is because at no time were any adjustments made to the individual books of the entities within the group structure (parent and subsidiaries) -The effects of past consolidation adjustments and eliminations are not incorporated in any opening balances and need to be replicated across subsequent periods after the initial acquisition date c)
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