Consolidating entries worksheet
For example, if one company owns just 30 percent of the other's stock, but the two companies share employees or have substantial transactions between them, that's evidence that one associate company can exert indirect control over the other.
You may have to use consolidated accounting in this situation.
Under this method, consolidated financial statements and elimination of intra-group activity are not required.
Instead, the company will report its initial investment in the investee's stock at cost.
With consolidation, you report the subsidiary's results on the parent's statements as if the subsidiary does not exist in its own right at all.
General consolidation rules say you must consolidate whenever one company has a majority of the voting power in another company, meaning it controls at least 51 percent of the subsidiary's outstanding common stock.
It creates a new workbook containing two worksheets.
The test is whether the parent is able to exert significant influence over the subsidiary's business decisions.Thank you We ended up using Excel to create our consolidation entries for us.