Adjust the parent company's long-term equity investment in subsidiaries included in the consolidation scope according to the equity method (only in consolidated statements, laying the foundation for the latter two consolidation offset entries. The parent company data in the consolidated accounting statements are still presented at the cost method)
Borrow: Long-term investment-profit and loss adjustment (undistributed profit and surplus reserve increase realized after the subsidiary is invested and controlled by the parent company × shares held by the parent company)
Loan: investment income (parent company's investment income in subsidiaries in the current period = subsidiary's net profit in the current period × parent company's shareholding)
Undistributed profit at the beginning of the year (income from parent company's investment in subsidiaries in previous years)
Borrow: Long-term equity investment-equity investment difference (the capital reserve of subsidiaries increases after the parent company invests in holding shares)
Loan: capital reserve
Understand the method of offsetting entries in extended data consolidated reports;
Is to cancel out the imaginary or repeated parts.
For example, when a parent company sells its inventory to a subsidiary, the cost is 6,543,800 yuan and the price is 6,543,800 yuan. As far as the whole group is concerned, the income of the parent company and the inventory of the subsidiaries are 500,000 yuan, and the consolidated entry is to offset this virtual project.
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