technical accounting
Redeemable NCI: How to Account for Put Options on Non-Controlling Interests
A non-controlling interest does not always sit quietly in equity. When the minority shareholder holds a contractual right to sell…
How to Prepare Consolidated Financial Statements for a Group With Multiple Currencies
Yusuf had read the rules. P&L at the average rate. Balance sheet at the closing rate. The difference goes to…
Disposal of a Subsidiary in Group Consolidation: How to Calculate the Gain, Derecognise the Net Assets, and Remove NCI
When a parent loses control of a subsidiary — whether through a full sale, a partial sale that drops below…
Non-Controlling Interest Formula: How NCI Is Calculated at Each Reporting Date
Non-controlling interest is not a static figure. It is set on the day the parent acquires control of the subsidiary,…
Deferred Tax in Group Consolidation: How Consolidation Adjustments Create Tax Differences
The consolidated deferred tax position is not the sum of the entities’ individual deferred tax balances. Group consolidation introduces adjustments…
Intercompany Loan Eliminations: A Practical Guide to the Complications That Matter
The basic elimination of an intercompany loan is simple enough: the loan receivable in the parent’s accounts and the loan…
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,…
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,…
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…