f3 - BusinessConsolidations Copyright Doug Hillman 2000...

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© Copyright Doug Hillman 2000 Business Consolidations
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© Copyright Doug Hillman 2000 Parent/Subsidiary When investor owns more than 50% of voting stock of another company, assume ability to control Investor company is parent Investee company is subsidiary
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© Copyright Doug Hillman 2000 Consolidated Financial  Statements Parent and subsidiary may be separate legal entities For reporting, view as single economic entity Consolidated financial statements show financial position and operating results of combined companies FASB No. 94 requires consolidation when parent has controlling interest
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© Copyright Doug Hillman 2000 Reciprocal Accounts Accounts in two separate sets of books that represent a common element and will cancel each other out Investment on parents books and owners’ equity on subsidiaries For intercompany transactions Accounts receivable and accounts payable Sales and cost of goods sold
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Consolidating
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This note was uploaded on 02/11/2011 for the course ACG 2021 taught by Professor Mcdonald during the Spring '08 term at University of Florida.

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f3 - BusinessConsolidations Copyright Doug Hillman 2000...

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