ares;
The company must be the same area.this method, there is no firm price, no revaluation of assets to their fair market value, which would lead to an increase in depreciation charges. [16] consolidated statement of income. Consolidated profit and loss account prepared similarly consolidated balance sheet, ie summing the profit and loss accounts of the reporting companies in the group, and the exclusion of income and expenses arising from intra-group transactions, because the concern can not realize gains and losses on transactions within itself. In its consolidated statement of income includes only the financial results of transactions with third parties not part of the group. This is achieved by conversion of corresponding costs and benefits, and (or) their rearrangement in the profit and loss account. It should be noted that not only excludes revenue from sales of products and other income from sales and services. (Appendix B) process of consolidation of the profit and loss include:
Consolidation of the internal turnover from the sale between the Group companies,
Consolidation of other income and expenses,
Consolidation of translation gains or losses within the group.consolidated statement of income may be a situation where enterprises groups use different methods of cost accounting - full cost method or the method of direct costs. Therefore, during the preparation of the consolidated financial statements to account for all profit and loss statements of the individual companies on one of these two methods.it is always associated with significant costs, all enterprises should concern from the beginning to stick to one method of accounting for the costs of the consolidated statement of income.was the technique of so-called full consolidation used for subsidiaries. As already mentioned, the inclusion of the results of jointly controlled entities and joint activities in the consolidated group is similar to the full consolidation of the use of the method of proportional consolidation or consolidation of quotas based on the proportional inclusion in the report group's share of the parent company's assets and liabilities as well as the costs and benefits the joint venture or joint venture.consolidation, reporting companies in the group, in a subsequent period of their activity additional difficulties related to the necessity of elimination of items that are mutual in- house operations, in order to avoid double counting and artificially inflating the value of capital and financial results. Articles to be elimination - is items that are excluded from the consolidated financial statements as a result of double counting and distortion of the financial performance of the group.concept of the group assumes a special interest in the transaction between the companies within the group. Intercompany transactions are similar to transaction...
