The credit granted by the parent company is usually inseparable from the approval of the group credit limit. If only the parent company provides credit in the group, the internal evaluation of the parent company and the approval of the credit line need to be carried out in the parent company headquarters report, and the consolidated report needs to be reviewed to identify the group risks.
At the same time, the parent company is often the most powerful entity in the group, so the headquarters statement of the parent company is an important part of the consolidated statement.
Extended data:
What's the difference between consolidated statements and parent company statements?
1, the parent company refers to the listed company itself.
2. Consolidated column refers to the amount or value extracted from consolidated statements. Consolidated statement is a financial statement prepared by the holding company based on individual financial statements prepared by the holding company and its subsidiaries, which reflects the consolidated financial position and operating results after the offset of current accounts within the group.
3. Although the parent company controls its subsidiaries, it is often not 100% holding. Therefore, when the profits of the merged subsidiary are included in the scope of consolidated statements, it is necessary to consider the profits shared by other minority shareholders (minority shareholders' rights and interests). After deducting this part, it is the net profit "attributable to the parent company"-so the consolidated list includes the net profit attributable to the owner of the parent company. As for the parent company itself, all the net income belongs to the parent company.
4. The loss of the parent company, the total profit of the subsidiaries within the scope of merger, and the profit scale exceeds the loss of the parent company.
5. This is the disclosure standard stipulated by China Securities Regulatory Commission. Except for individual indicators such as debt ratio, other indicators are disclosed in the consolidated statements to reflect the overall financial position and profitability of the company.
How to merge the reports of subsidiaries and parent companies?
The consolidated report should have four items:
① Current sales offset
Debit: main business income (current sales = buyer's purchase amount excluding tax)
Loan: main business cost
② The part purchased in the current period but not sold in the current period belongs to the unrealized profit in the current period and is offset.
Borrow:
Cost of main business (unrealized profit in current period = sales in current period * profit rate * unsold rate)
Credit: Inventory
③ The part purchased in the previous period, unsold in the previous period and unsold in the current period.
Debit: undistributed profit at the beginning of the period (last period sales * last period profit rate * last period unsold proportion)
Credit: Inventory
③ Purchased in the previous period, unsold in the previous period, and sold in the current period: undistributed profit at the beginning.
Loan: main business cost