Pulling Together Consolidated Financials in Excel
This video is a comprehensive example of how to prepare consolidated financial statements under ASC 810. ASC 810 is the GAAP standard for the consolidation of business legal entities. Watch the Full Video ➡️ • Consolidation Accounting with Multiple Com...
Watch the Consolidation Accounting Series ➡️ • Accounting and Finance ➡️ Comprehensive Re...
Consolidation Accounting considerations to think through:
1) Why do you consolidate legal entities?👉 A larger business generally speaking is made up multiple entities which reflect a full economic entity.
2) What are you consolidating?👉 You are consolidating entities that are controlled through ownership and/or have the power to control an entity. Consolidation accounting reflects the total combined assets, liabilities, revenue and expenses along with eliminating any intercompany activity.
3) When do you consolidate financial?👉 There are various reasons to consolidate a full economic entity, but several include: financing, audits, equity raises, public company reporting, etc.
4) How do you consolidate business entities?👉 Follow ASC 810 which defines how a parent entity should consolidate controlling financial interest either by a voting interest or by variable interest.
👍Supporting resources:
Non-controlling Interest: • Understanding Non-Controlling Interest (Mi...
Equity Method Accounting - GAAP Accounting for Investments • Equity Method Accounting Explained (GAAP A...
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