How I would Approach a Consolidated Balance Sheet - DFS Paper

System

I've had a few emails and queries from others about how the best way is to approach a Consolidated Balance Sheet - here is how I would do it. You might want to print this out and keep it in your revision notes:

Step 1
Read the requirements

Step 2
Draw up the Group Structure as W1, highlight the % owned and the dates of acquisition

Step 3
Draw up the proforma taking into acocunt the group structure identified remember to include minority interest, leave lines in case of any additions and put in ordinary share capital and share premium (the HOLDING company only).

Step 4
Read the additional notes and attempt the adjustments showing workings for all calculations. Transfer the final answr onto the face of the question paper.

Step 5
Aggregate the net assets, incorporating the adjustments.

Step 6
Calculate goodwill (cost of investment less groups net assets acquired)

Step 7
Calculate minority interest (=% S's net assets +/- adjs) at B/S date

Step 8
Calculate the profit and loss reserve carried forward

You all may have your own way of doing these but this is just to help those who may want to find an alternative way. Hopefully this will help a few of you. The best tip I can give is to have one page for the consolidated balance sheet/profit and loss and another page in your answer book headed up "workings" and reference each working to the proforma - you will be surprised how many marks you can get even if you don't balance!!

Regards
Steve

System

Re:How I would Approach a Consolidated Balance Sheet - DFS Paper

Thanks,Steve