technical accounting
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,…
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…
Goodwill in Group Consolidation: Calculation, Impairment, and Common Errors
Of all the numbers that appear on a consolidated balance sheet, goodwill is typically the one that generates the most…
Currency Translation Under IAS 21, ASC 830 and FRS 102: What Changes Across Standards
The group had three subsidiaries in three countries, each reporting under a different accounting standard. The UK holding company reported…
NCI in the Consolidated Statement of Changes in Equity: How to Build the NCI Column Correctly
The audit partner had reviewed the consolidated financial statements twice. The income statement looked right. The balance sheet reconciled. But…
Recycling the CTA on Disposal of a Foreign Subsidiary: What Happens to the FCTR When You Sell
The finance director had been preparing the sale of the Singapore subsidiary for six months. She knew the headline figures:…
NCI and Currency Translation Adjustments: How to Split the CTA in Partly-Owned Foreign Subsidiaries
Most finance teams understand the mechanics of currency translation well enough: income statement items are translated at the average rate…
Goodwill in Group Consolidation: How to Calculate and Account for It in Your Group Accounts
When a group’s holding company acquires a controlling interest in another business, a new figure tends to appear on the…