FAC 3704
GROUP FINANCIAL REPORTING
LEARNING UNIT 2: CONSOLIDATION AFTER DATE OF
ACQUISITION
BASIC CONSOLIDATION PROCEDURES
STEP ONE: STEP TWO: STEP THREE:
CONSOLIDATE ALL ELIMINATE ELIMINATE
INTRAGROUP
ITEMS COMMON ITEMS
ITEMS
STEP ONE:
CONSOLIDATE ALL ITEMS
Combine the separate financial statements on the subsidiary and the parent so they become
one consolidated financial statement of the group.
EXAMPLES:
1. Statement of Financial Position
PARENT’S SUBSIDIARY’S GROUPS COMMENTS
BOOKS BOOKS BOOKS
ASSETS
NON – CURRENT
ASSETS
GROUP FINANCIAL REPORTING
LEARNING UNIT 2: CONSOLIDATION AFTER DATE OF
ACQUISITION
BASIC CONSOLIDATION PROCEDURES
STEP ONE: STEP TWO: STEP THREE:
CONSOLIDATE ALL ELIMINATE ELIMINATE
INTRAGROUP
ITEMS COMMON ITEMS
ITEMS
STEP ONE:
CONSOLIDATE ALL ITEMS
Combine the separate financial statements on the subsidiary and the parent so they become
one consolidated financial statement of the group.
EXAMPLES:
1. Statement of Financial Position
PARENT’S SUBSIDIARY’S GROUPS COMMENTS
BOOKS BOOKS BOOKS
ASSETS
NON – CURRENT
ASSETS
