what is the difference bitween Consolidated and Parent
Companies?
Answers were Sorted based on User's Feedback
Answer / viswanatha
onsolidated f/s like combined f/s sum up the reporting entities or subsidiaries transactions into a total.
The difference is that consolidated f/s will eliminate transactions where subsidiary entities bought and sold goods or loaned each other money. For example lets say we have Parent company P and subsidiary companies S and T. S sells 1,000 widgets to T for 10 each = $10,000. S would record revenue of $10,000 and T would record expense of $10,000. However when P consolidates the f/s P would eliminate that sale as an inter-entity transaction, if not, then revenue and expenses would be over stated by $10,000. P is really just moving money from one pocket to another, there is no sale where P actually gains real income.
Hope this was helpful.
Is This Answer Correct ? | 6 Yes | 0 No |
what is mercentile system in accounting
20. Between educational qualification and practical work experience, give us a brief explanation on your practical experience in your past Endeavour that you performed well to the satisfaction of your past or present employer?
1 Answers Dodsal, Swil, Tesla,
How to post advance paid to a supplier in oracle jd edwards
what is a capital budgeting
What is a ledger?
we paid bonus how to treat entry and what is the debit and credit
What is journal entry for salary paid less deductions (e.g. fines for breaking a company's property)?
what is the diffrence between bank o/d & bank occ?
RPC Ltd. follows the written down value method of depreciating machinery year after year due to (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above.
cost of normal waste of material under contact costing is debit to : 1)contract a/c 2) trading a/c 3) matrial a/c 4) profit and loss a/c
on 01/04/2009 Goods sold to Mr."A' on Credit at $ 1000. Exchange Rate :- 01/04/2009..........$50.00 at payment Date Exchange Rate :- 01/05/2009..........$48.00 What is Journal Entry..?
What will be the Journal Entry for this? Purchases goods from vendor worth Rs.20000.VAT included 4%.