Consolidation

Louise:)

im currently doing consolidation.

im not very sure what the figures mean i.e share capital, reserves etc.

could someone give me a easy meaning for them, so that i can understand the workings better, to produce the b/s.

thx
lulu

crispy

Hello,

The share capital figure is simply the division of ordinary shares of the company at par (nominal) value. On the condsolidated b/s this will be 100% of the parent only.

The consolidated reserves (accumulated profits) will be made up of 100% of the parent, plus the pecentage of post acquisiton reserves of the subsidiary. Have a look at a few past papers for technique of consolidation and I am sure you will have no problem with this.

Louise:)

ok thx