Consolidated accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi all,

being a bit thick, but how do i work out the profit and loss figure to go in the consolidated bank account. I know i know it but my mind has gone totally blank.

please help!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Consolidated accounts

    Just add them up parent + 100% subsidiaries! (from memory)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Consolidated accounts

    Do you mean the reserves? On the bottom half of the balance sheet? In which case you take the subsidiarys reserves less any pre-acquisition reserves, then take the holding comapany's share (e.g. 75% - or however much the holding company has bought - of your answer) and add it to the holding company's reserves.

    Hopefully that makes sense!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Consolidated accounts

    Hi

    If you mean the Profit and Loss account in the Capital and Reserves section of the consolidated Balance Sheet then
    1) The parent company's profit and loss amount
    2) Any profit the subsidiary has gained since the date of acquisition (do not include any that was in the account at acquistion)
    3) Remove any goodwill amortisation
    4) Remove any unrealised profit

    I hope that is right as it is how I am doing it. :-)

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