1. The consolidated balance sheet is a balance sheet prepared as a whole by two or more independent enterprises that are closely related in terms of equity. Often used by holding companies to reflect the combined financial status of the holding company and its subsidiaries.
Each enterprise that prepares a consolidated balance sheet must use unified accounting accounts and statement items. When preparing, all transactions, mutual loans, and investment projects between various companies should be offset, and other items can be Simple addition.
Part of the subsidiary's shares held by the holding company will be offset against the subsidiary's shareholders' equity in proportion, and the remainder will be included in the "minority equity" account.
2. The Balance Sheet (the Balance Sheet), also known as the statement of financial position, represents the financial status (that is, the status of assets, liabilities and owners' equity) of an enterprise on a certain date (usually the end of each accounting period) Main accounting statements.
The balance sheet uses the principle of accounting balance to divide the transaction items of assets, liabilities, and shareholders’ equity that comply with accounting principles into two major blocks: “assets” and “liabilities and shareholders’ equity”.
After accounting procedures such as entries, transfers, ledgers, trial calculations, adjustments, etc., it is condensed into a report based on the static company situation on a specific date. Its report functions include internal debugging, business direction, etc. In addition to preventing disadvantages, it also allows all readers to understand the operating status of the company in the shortest possible time.
Extended information:
The consolidated balance sheet has the following characteristics:
1. The value of each item of the combined net assets is equal to the book value of the parent company's net assets plus the fair value of the subsidiary's net assets minus the amortization amount for the current period;
2. Goodwill is calculated as the unamortized value at the end of the current period. Numbers are presented;
3. The owners’ equity items of the consolidated balance sheet are equal to the owners’ equity items of the parent company respectively;
4. The amount of retained profits on the consolidated balance sheet is based on the consolidated retained earnings. The amount of retained profits at the end of the period is presented in the income statement.
The main items that need to be offset when preparing the consolidated balance sheet are:
(1) The parent company’s equity in the subsidiary. Investment projects and subsidiary owner’s equity projects;
(2) Internal claims and debts between the parent company and its subsidiaries, and between subsidiaries;
(3) Inventory projects , that is, the unrealized internal sales profit included in the value of internally purchased inventory;
(4) Fixed asset items (including the original price of fixed assets and accumulated depreciation items), that is, the unrealized internal sales profit included in the value of internally purchased fixed assets Unrealized internal sales profits;
(5) Intangible asset items, that is, unrealized internal sales profits included in the value of internally purchased intangible assets;
(6) Long-term and offsetting Offset of impairment provisions related to equity investments, accounts receivable, inventories, fixed assets, intangible assets and other assets
Baidu Encyclopedia - Consolidated Balance Sheet
Baidu Encyclopedia - Balance Sheet