ign="justify"> The authorized capital;
Reserve capital;
Reserves formed from gross income;
Retained earnings (loss);
Net income (loss) of the current year.are stages of consolidation of the balance, depending on the presence or absence of mutual transactions:
Initial consolidation (in the preparation of the consolidated financial statements for the first time the formerly independent companies) related to the acquisition of the invested enterprise;
Subsequent consolidation (in the consolidated statements of the group formed earlier and ongoing mutual transactions). and methods of consolidated financial statements in different countries are different.profit and loss account. The profit and loss account of the subsidiary is 100% owned by the parent company, there can be no changes included in the profit and loss account of the parent company for the consolidated figures. In practice, there are adjustments to compensate figures for revenues, costs, profits, dividends, etc. between companies (Annex B). is an extract from Annex B., the consolidation of a substitution in the statements of the parent company's "book value of investments" in each subsidiary of the fact that these investments are really at the moment, that is, the share of the parent company in the fair value of the net assets of the subsidiary at the balance sheet date and balance arising on acquisition investments.
.3 METHODS OF CONSOLIDATED STATEMENTS OF PRIMARY
on the nature of the transaction for the investment and establishment of control are two of the primary method by which the consolidated financial statements: the method of purchase (acquisition) and the method of merger (absorption). These methods differ procedurally and have a great impact on the aggregate financial results presented in the consolidated financial statements.purchase method. According to this method at the date of acquisition to determine the fair market value of the parent company acquired identifiable assets and liabilities. Amount of such assets is recognized under the parent company "Investments". Should be borne in mind that the assets are bought not actually invested companies and its share in equity, equivalent to net assets at cost. Purchase of assets, such as property, land, etc. radically different from the purchase of shares or in the share capital by the same amount. Purchase of assets does not entail the need to draw up consolidated accounts and the acquisition of more than 50% of the voting rights would require consolidation.purchase and establishment of control is difficult to determine the date on which should be consolidated because the date of acquisition of shares in the capital and the date of the revaluation of assets may be different.of the acquiree obtained prior to the ...
