The parent company shall unify the accounting policies adopted by its subsidiaries so that the accounting policies adopted by the subsidiaries are consistent with those adopted by the parent company; If the accounting policies adopted by the subsidiary are inconsistent with those adopted by the parent company, necessary adjustments shall be made to the financial statements of the subsidiary company according to the accounting policies of the parent company; Or require subsidiaries to prepare financial statements separately according to the accounting policies of the parent company.
At the same time, the parent company should unify the accounting periods of its subsidiaries, so that the accounting periods of the subsidiaries are consistent with those of the parent company. If the accounting period of the subsidiary is inconsistent with that of the parent company, the financial statements of the subsidiary shall be adjusted according to the accounting period of the parent company; Or require subsidiaries to prepare financial statements separately according to the accounting period of the parent company.
2. Summarize the parent-subsidiary statements.
Today, I will focus on the method of summarizing the statements of parent and subsidiary companies. Some people may find it difficult to sum up sentences, just simply add them up. However, various books introduce how to merge the balance sheet and the income statement E799Be5Bae6E4B 893E5B19E31333431343661,and always regard the balance sheet and the income statement as two independent statements.
This treatment not only destroys the overall logic of the balance sheet and the income statement, but also tends to neglect one thing and neglect the other, resulting in the wrong cross-checking relationship between the consolidated balance sheet and the consolidated income statement. Therefore, in practice, we will choose the way to open the balance sheet and the income statement, and list the two tables in one table, which we usually call the trial balance-TB table. Where is this open logic? Is accounting identity.
When preparing consolidated statements, the assets and liabilities of group companies should include all assets and liabilities of companies A and B. The profit and loss statements of the two companies should also be added up item by item.
It should be noted that from the point of view of the group company, the long-term equity investment on the original balance sheet of Company A should be reduced. 8% of the shares held by minority shareholders should be reflected in the owner's equity part of the group company's statements. The balance sheet and income statement should be adjusted, because the previous internal transactions between the two companies did not happen to the group company (that is, it was impossible to sell things to themselves or provide valuable services).
Assets = liabilities+owners' equity
This is the initial state. If this enterprise starts to operate, it will have current profits, as shown in the above table.
Assets = liabilities+owners' equity (beginning)+current year's profit
Further split this year's profit, the above table is changed to
Assets = liabilities+owners' equity (beginning)+income-expenses
If the income and expenses are further refined, it becomes the income statement. In other words, the balance sheet naturally contains the income statement, but we usually don't identify it carefully. Move all the items on the right side of the above formula to the left to get the following formula.
Assets-liabilities-owners' equity-income+expenses =0, and then further change.
Assets+(-liabilities)+(-owners' equity)+(-income)+expenses =0.