Download
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
Consolidated Accounts PowerPoint Presentation
Download Presentation
Consolidated Accounts

Consolidated Accounts

299 Views Download Presentation
Download Presentation

Consolidated Accounts

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Consolidated Accounts

  2. Investment holdings > 50% = Large holdings The holding company > The subsidiary

  3. To give shareholders An overview of their investments An overall financial position and performance of the group

  4. To prepare a group financial statement As a Single Economic Entity

  5. Transactions between the group companies do not reflect transactions between the external parties and therefore should be eliminated

  6. Inter company indebtedness e.g. inter company loan debentures proposed dividends

  7. Long term investment of H Share capital + reservesof S

  8. 1.Unrealized Profits from intra-group transactions - on unsold inventories -on fixed assets

  9. Pre-acquisition Reserves -Cost of control -Minority interests

  10. Pre-acquisition Reserves -Share Premium -General Reserve - Revaluation Reserve of subsidiary

  11. Minority interests       - Profit and loss account - Balance sheet

  12. Proposed dividend pay out from Pre-acquisition Profit -should not be treated as investment income - It is a reduction in the cost of investment

  13. Proposed dividend Pay out from Post-acquisition Profit - investment income

  14. % of holdings: 4000/5000 = 80%

  15. To sum up: Fixed assets = H + S – I Current assets = H + S – I Current liabilities = H + S – I Long term liabilities = H + S – I Share Capital = H Reserves = H + Post-acquisition Reserves of Subsidiary

  16. THE END