Technical Accounting
How to Reconcile Consolidated Equity
The audit senior’s email arrived on a Tuesday morning, two weeks before year-end sign-off. Claudia, group financial controller at Veritas…
How to Consolidate a Subsidiary After a Change in Ownership
Two years ago the group acquired a 60% stake in a specialist logistics business. It was consolidated from day one,…
Why Your Equity Pickup Is Wrong After Acquiring an Associate: Fair Value Adjustments and Embedded Goodwill
Sarah is group controller at a holding company that completed a 35% acquisition of DesignAssoc Ltd eight months ago. The…
How to Reconcile Consolidated Retained Earnings
The audit PBC request landed in Priya’s inbox on the first Friday of January. She had been group financial controller…
Intercompany Eliminations When There Is a Non-Controlling Interest: Upstream, Downstream, and Lateral Sales
When every subsidiary in a group is wholly owned, intercompany eliminations are mechanically straightforward: the full profit on any intragroup…
How to Consolidate a New Subsidiary Acquired During the Year
The deal closed on 1 May. The group paid £2.4 million for a 75% stake in a profitable manufacturing business,…
Eliminating Unrealised Profits on Associate Transactions: Upstream, Downstream, and Asset Sales
Marcus is group controller at a holding company with a 40% stake in RetailAssoc Ltd, a wholesale distribution business. During…
Intercompany Eliminations in Multi-Currency Groups: How Foreign Exchange Affects Your Consolidation Adjustments
The finance director of a UK group with subsidiaries in Australia and Singapore described the problem with characteristic understatement: “The…
How to Prepare a Consolidated Cash Flow Statement From Multiple Entities
When the audit committee asked for a group cash flow statement for the first time, Priya assumed the hard work…
When Your Associate Keeps Losing Money: Equity Method Loss Recognition, Suspension, and Recovery
Priya runs group finance for a mid-size holding company that took a 30% stake in an associate three years ago.…