Because it possesses the majority of shares in the investee when the investor company exercises total control over the investee, the necessary accounting treatment is called consolidation. This article aims to provide information on the basics of consolidation accounting that are essential for managerial functions. As a supervisor, you will be involved in tactical decisions which may lead to the acquisition of other businesses.
If the acquisition is made, then the appraisal of the investment opportunity will need an approximation of the new group's consolidated accounts. This article uses examples to help explain distinct issues such as coping with goodwill and minority interests and eliminating inter company transactions.
PUBLICATION DATE: May 02, 2016 PRODUCT #: IES537-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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