# Consolidated Balance Sheets - Can any help!

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Registered Posts: 18 New contributor 🐸
I am struggling with Consolidated Balance sheets and how you do them tI have read the example in the book about 4 times and I still cant get it right - any help please ..... is hoping the penny drops soon!

• Registered Posts: 49 Regular contributor ⭐
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Hello

First thing that you need to get your head round is the workings, as you cannot consolidate the balance sheet until you have worked out your workings.

Do you understand how to do the workings?
• Registered Posts: 624 Epic contributor 🐘
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I did an article on consolidated balance sheets, which can be found here

I hope it helps.

Kind regards
Steve
• Registered Posts: 218 Dedicated contributor 🦉
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Consolidated balance sheet
This question is not about adding across the two balance sheets but 85% of the marks are allocated to the 5 workings that you MUST show to an examiner
Working 1- Relationship (5%)
Show what percentage dos the Parent company owns of the subsidiary. Say 75% (A)

Working 2 (2 parts) – Valuation of S- subsidiary at Acquisition date and Balance sheet date (40%)
Share Capital…………………………………@ A date……………………………………..……………………@ b/s date
Share Premium…………………………….@ A date……………………………………………………………@ b/s date
Retained profit & loss…………………@ A date……difference= this years profit…(B)…… @ b/s date
Property Valuation……………………..@ A date…………………………………………………………..@ b/s date
Total value of S at ……………….Acquisition Date…(C)……………………………………….Balance sheet Date (D)

Working 3 Goodwill calculation (20%)
Valuation of S at the acquisition date (C) in working 2 times (A) in working 1 = Value of S acquired (E)
Payment for the investment in the Subsidiary (from P’s balance sheet) less Value of S acquired (E) equals GOODWILL.
GOODWILL less amortisation (E) equals GOODWILL to be shown in the consolidated balance sheet.

Working 4 – parent’s company’s Profit & loss A/C (15%)
P’s Retained profit and Loss
Plus (this year’s profit of S (B) in working 2 times (A) in working 1)
Less goodwill amortisation (E) from working 3
Equals Retained profit for the Parent company to be shown in the consolidated a/c

Working 5 – Minority interest (5%)
Valuation of S at the balance date (D) from working 2 times the minority % This working will go as a minority interest on the consolidated balance sheet.

Consolidated Balance sheet of the GROUP as at DATE (15%)
Non-Current assets
Goodwill ( NET of amortisation) from working 3 (E)
Total of premises of both P & S plus Revaluation (5%) (students very often forget this)
Total of other fixed assets of both P & S

Current assets
Total of Current assets of both P & S

Non Current assets
Total of Non-Current assets of both P & S

Represented by ( ONLY FIGURES FROM P’s Balance Sheet) (5%)
P’s Share Capital
P’s Retained Profit – working 4
S’s minority interest – working 5

Consolidated completed and balanced.
• Registered Posts: 18 New contributor 🐸
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Not really
• Registered Posts: 18 New contributor 🐸
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peugeot wrote: »
I did an article on consolidated balance sheets, which can be found here

I hope it helps.

Kind regards
Steve
Steve I cant view this article can you email it to me chrissiemartin@harwoodhutton.co.uk
thanks
• Registered Posts: 218 Dedicated contributor 🦉
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which part of workings you do not understand?

do you understand this working?
• Registered Posts: 624 Epic contributor 🐘
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Hi,

Unfortunately I can't email you the article, but if you log on to

www.accountancystudents.co.uk

Then go into Articles, and Financial Reporting, the consolidated balance sheet article is there.

Kind regards
Steve
• Registered Posts: 49 Regular contributor ⭐
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Hello

Have you got any further with getting to grips with this?
• Registered Posts: 18 New contributor 🐸
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thanks