Consolidating finance

I’ll do it on a case study, with explaining what I do and why.If you don’t like reading, you can skip to the end of this article and watch my video.There might be some goodwill arisen on initial recognition.

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If you’d like to revise a theory first, then please read my summary of IFRS 3 Business Combinations and IFRS 10 Consolidated Financial Statements, both of them contain video in the end.

Here’s the question: Mommy Corp has owned 80% shares of Baby Ltd since Baby’s incorporation.

DOWNLOAD EXCEL FILE HERE Please watch the video here: Here’s the example of consolidation where a subsidiary has different functional currency than its parent.

You’ll learn how to translate the subsidiary’s financial statements.

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Southern Finance makes secured and unsecured loans to individuals with a wide variety of financial situations, from the most credit worthy to those with less than perfect credit.

Below there are statements of financial positions of both Mommy and Baby at 31 December 20X4.

Prepare consolidated statement of financial position of Mommy Group as at 31 December 20X4.

However, when you look at both parent and subsidiary as at 1 company, which is the purpose of consolidation, then you find out that there’s no transaction at all.

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