Stepped process
In this lesson, you'll learn the stepped process for preparing a consolidated statement of profit and loss—a core technique in SBR and F2.
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In this lesson
- 0:00 Consolidated statement of profit and loss overview
- 0:09 Establishing group structure and ownership percentages
- 0:25 Combining revenue and expenses line by line
- 0:51 Adjusting for intra-group trading and unrealised profit
- 1:07 Splitting profits between NCI and parent shareholders
- 1:39 Completing the consolidated statement format
About this lesson
We break down the five essential steps: establishing group structure and ownership percentages, combining revenue and expenses line by line, adjusting for intra-group trading and unrealised profit, splitting profit between noncontrolling interest and equity shareholders, and completing the consolidated statement with the required footer. This systematic approach ensures you handle consolidation adjustments accurately and present the final figures correctly, which is critical for exam success and real-world consolidation work.
Duration: 2m
Transcript
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