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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.
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.
I use it this way because for me it’s easier to verify and identify mistakes, but it’s up to you.
I have described the consolidation procedures and their 3-step process in my previous article with the summary of IFRS 10 Consolidated financial statements, but let me repeat it here and follow these steps: After you make sure that all subsidiary’s assets and liabilities are stated at fair values and all the other conditions are met, you can combine, or add up like items.
If you’d like to learn more about goodwill, please refer to the article about IFRS 3 Business Combinations. Please don’t forget that I have transferred this journal entry into our consolidation worksheet and it looks as follows: Parents and subsidiaries trade with each other very often.
After summaries of standards related to consolidation and group accounts, I’d like to show you how to prepare consolidated financial statements .
Recognize it with minus, as we are crediting equity with non-controlling interest.
There might be some goodwill arisen on initial recognition.
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A debt consolidation loan is a single loan (generally from a financial institution) that allows you to repay your debts to several or all of your creditors at once.