Consolidation procedures in a nutshell - Part 1

 

Hi all!!

 

I have revised Consolidation and wanted to redo the project with an ease of understanding in the Excel model for everyone. (SPLOCI-PL by Function format & SOFP by Nature format)

 Consolidation Part 1 Excel:

I’ve followed the basic steps in consolidation after creating proforma statements and worked out the intra-group transactions.

Step 1: Consolidate

Step 2: IG adjustments

Step 3: Tally the Group SOFP.

 

Here is the video demonstrating how to consolidate:

 https://youtu.be/eIz7u1cfo-k

Once you're finished will all the steps, You’re DONE!!

I’m as concise as I can be today and to conclude all formulas are included in the worksheet for your information.

 

Note: I’ve done my best with Intra-group Leases. All I did was recognize them and present the non-current obligations accurately and the cancellation happened as per dual aspect. I’ve got 2 more videos on how to calculate Leases in the books of Lessee and Lessor.

 https://youtu.be/sE-t-CYlEOY

https://youtu.be/iKtVbQf9W8I

Understanding Non-current assets transfer was a bit of a challenge than the entire process of Group accounting. Somehow, all the information presented is interpreted to the best of my ability and everyone will concur that the workings are well named for easy readability and understandability.

 The allocation of goodwill at the bottom is a procedure and it works without deferred taxes. It's a gist but procedure is accurate. 

This time, acquisition occurred at the beginning of the year and next time, acquisition will occur in the middle of the year and hopeful that future model will expound reporting based on time apportionment plus different intragroup transactions. 

Until then, have a nice time!

Regards.