consolidation
The Corporations Act 2001 s292 gives exemption from the requirement to prepare group accounts to small groups but not medium sized groups.
It is form of reporting to bring all subsidaries together, under the imbrella of a parent company, the financial statements of all its subsidiary companies. It combines all the financials into a single source to meet ASIC and IFRS accounting standards.
Why is it required
Consolidated financial statements provide a true and fair view of an organisation’s financial health across all divisions and subsidiaries:
They are required when one company owns more than 50% of the outstanding common voting stock of another company, but there are many rules and regulations to account for.
Consolidation software can help organisations improve the process as well as respond quickly to market changes, make better-informed decisions, and capitalise on new opportunities
Consolidation Accounting Process
record intercompany loans
charge corporate overheads
charge payroll expenses
Complete adjusting entries.
asset, liability, and equity account balances
review subsidiary financial statements
Eliminate intercompany transactions
Review parent financial statements
Close subsidiary books
Close parent company books
Issue consolidated financial statements
If you have any questions in relation to the consolidation process, please feel free to contact our Team.