Summary Group accounting : An introduction

This document introduces the topic of group accounting and indicates how to consolidate , what the starting point is before consolidating and what proforma journal entries need to be processed . Moreover , it includes detailed examples of how to do so . Additionally it illustrates how to present consolidated financial statements ; statement of comprehensive income , statement of financial position, statement of changes in equity and statement of cash flows . It illustrated through worked examples how to account for and calculate goodwill and how to consolidate, “ wholly owned” versus “partly owned” subsidiaries . It also has worked examples that show useful tools in the consolidation process such as “ Analysis of equity” tables