Preparing CSOFP
In this lesson, you'll learn the step-by-step process for preparing a consolidated Statement of Financial Position (SOFP), a core requirement for SBR and F2 exams.
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In this lesson
- 0:00 Part three preparing a consolidated SOP
- 0:27 Step-by-step consolidation process overview
- 0:44 Step two cancelling the investment
- 1:05 Step three establishing subsidiary net assets
- 1:49 Step four calculating goodwill
- 2:09 Step five calculating group retained earnings
- 2:28 Step six calculating noncontrolling interest
- 2:45 Step seven combining assets and liabilities
- 3:12 Step eight finalising the consolidated SOP
About this lesson
We'll walk through establishing group structure, cancelling the investment in the subsidiary, calculating goodwill and group retained earnings, and combining assets and liabilities from both entities. By the end, you'll understand how to build a full consolidated SOFP from separate financial statements, with a complete worked example to cement your understanding.
Duration: 4m
Transcript
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