Technical Accounting
NCI at Acquisition: How to Calculate Non-Controlling Interest on the Date of Purchase
When HoldCo acquires 75% of SubCo, it controls SubCo from the acquisition date and must consolidate SubCo’s full balance sheet…
Goodwill on a Foreign Subsidiary: Why It Must Be Retranslated Every Period — and the CTA You Are Probably Not Recording
Rachel is the group financial controller of Nexus Group, a UK-based business that acquired a German subsidiary, Nexus GmbH, eighteen…
How to Compare Current-Year Consolidated Results With Prior Year
The board pack was on the table. Meridian Group’s consolidated revenue had grown from £16,200k to £21,640k — a 33.6%…
Negative Goodwill: Why the Bargain Purchase Gain Must Hit Your Consolidated P&L — Not Equity, Not Deferred Income
Claire is the group finance director of Atlas Industrial Group. The group has just completed the acquisition of Vantage Precision…
How to Handle Prior-Period Adjustments in Consolidated Financial Statements
Niamh was three weeks into the Year 5 audit when the message arrived from Castleton Products, the group’s 80%-owned manufacturing…
How to Consolidate a Subsidiary With a Different Financial Year-End
The acquisition completed in October, and by December the group was closing its financial year. The newly acquired subsidiary —…
How to Consolidate a Subsidiary When Ownership Is Less Than 100%
For three years, every entity in Daniel’s group was 100% owned. The consolidation was straightforward: add the trial balances together,…
Partially Disposing of an Associate: How to Calculate the Gain, Adjust the Carrying Value, and Handle a Drop Below Significant Influence
David is group FD at a holding company that has held a 40% stake in TechAssoc Ltd for four years.…
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,…