Illustration
You'll learn how to consolidate financial statements when a parent company acquires a subsidiary part-way through the year.
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In this lesson
- 0:00 Consolidation illustration overview
- 1:08 Step one establishing group structure
- 1:21 Step two combining and time apportioning
- 2:46 Step three inter-group trading adjustments
- 4:26 Step four profit attribution to shareholders
- 6:13 Consolidated statement of profit and loss
About this lesson
This illustration walks through the complete process using a worked example: establishing the group structure, time-apportioning revenues and expenses, adjusting for inter-group trading and unrealised profit, and splitting the final profit between the parent and non-controlling interests. By the end, you'll understand how to prepare a consolidated statement of profit or loss that reflects the group's true financial position—a core skill for SBR and AFM exams.
Duration: 7m
Transcript
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