Single entity accounting

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi <BR><BR>Can anyone one tell me the main differences btwn consolidated accounts and single entity accounts?<BR><BR>I know one difference is that intercompany transactions should be cancelled out in consolidated accounts, but what other differences are there?<BR><BR>Any help would be appreciated.<BR><BR>Thanks<BR>Cat

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Single entity accounting

    Hi Cat.<BR><BR>Consolidated accounts are when you have more than one company in the group, e.g. Smith PLC also owns 70% of Jones LTD.<BR><BR>Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Single entity accounting

    The big issue is the way in which investments in other companies are accounted for. This includes full consolidation, equity accounting and trade investment.<BR><BR>Goodwill makes an appearance in consolidated accounts as does change in status of investment and sales of investments. All good fun!

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