Process consolidating financial statements

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Read more Highlights of the 2018 Budget Speech Finance Minister Malusi Gigaba tabled the 2018 Budget Speech in Parliament on 21 February 2018.

He said in the coming year, government may be required to provide financial support to several........

There are two main type of items that cancel each other out from the consolidated statement of financial position.

Goodwill is treated as an intangible asset in the consolidated statement of financial position.

It authorizes the Superintendent of Financial Services to permit state-chartered banking organizations to exercise powers that are available to the corresponding federally-chartered institutions, but not expressly authorized by the Banking Law.

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For example, if a company buys shares of another company worth ,000 for ,000, we conclude that there is a goodwill worth or ,000.

The proforma for calculating the NCI is as follows: Non-controlling interest Fair value of NCI at acquisition date Plus NCI's share of post-acquisition retained earnings or other reserves = NCI at the reporting date In a group of companies, they can have trade relations with each other.

Foe example, company A buys goods for one price and sells them to another company inside the group for another price.

This topic provides a high-level overview of how you can work through the consolidation process.

Before you can perform a consolidation, you must set up the consolidated company.

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