Consolidation of Subsidiary Financial Statements by a Parent Company
You have a second chance to rewrite your memos to obtain the pass grade before August 12, 2021, 11:59PM.
Structure
• Follow the memo template Content
• Address and accurately present the topic
• Provide evidence/example to support the topic
• Be logically organized Style
• Be concise and precise (maximum two pages)
• Is free of misspellings and grammatical mistakes
• Cite references correctly Memo Writing Additional Information
1. Please refer to summary for Chapter 2 to write the main points for your memo.
2. Business Combinations have different types. You can choose one type and demonstrate the main points using a simple example.
3. Please keep the length of your memo limited between one or two pages (maximum two pages). You can use single or double spaced.
4. You do not need to have in-text citations. Memos in real life are internal business communication. Please keep it simple and straight to the point.
Memo Assignment Due Date July 15, 2021 11:59PM Explain to your manager how a parent should consolidate its subsidiary’s financial statement.
From: Name of Student
Date:
Subject: Consolidation of subsidiary financial statements by a parent company.
Consolidation is the incorporation of all subsidiaries into the financial statement of the parent company. This process is possible by integrating and combining all the financials to form a separate standard-form income statement, cash flow, and a balance sheet as part of the complete consolidated financial statement. The document is essential in keeping precise records and accounting for all the transactions within a company and its subsidiaries.
To consolidate subsidiary financial statements, the parent company has to undertake the following steps.
1 Account for inter-company loans. In the event that a parent company has been consolidating the cash balances of its subsidiaries into its investment account, it should first record intercompany loans from the subsidiaries to the parent and calculate the interests for the two parties.
2 Charge corporate overhead. If the parent assigns its overhead expenditure to its subsidiaries, it should be calculated and charged accordingly.
3 Look into the payables. When the parent company runs consolidated payables operations, verification on all accounts payable is recorded during the supposed period and charges accordingly to the various subsidiaries of the parent company.
4 Payroll Expenses. If the parent company was always paying the employees using one system, it should review the records and ensure that all the payroll expenses have been accurately allocated. This applies to all the subsidiaries of the parent company.
5 Check...
You Might Also Like Other Topics Related to single parent:
- Understanding Gender Beliefs1 page/≈275 words | APA | Literature & Language | Essay |
- Cultural Diversity Socio-Economic Status Single Parent Households1 page/≈275 words | MLA | Literature & Language | Annotated Bibliography |
- Info-Graphic: Obesity and Parent Relationship2 pages/≈550 words | APA | Health, Medicine, Nursing | Coursework |
- Parental Incarceration and Reunion with Family1 page/≈275 words | APA | Education | Coursework |
- Fertilization and Implantation3 pages/≈825 words | Harvard | Biological & Biomedical Sciences | Essay |
- The Reasons Behind Stealing Work from Artist and the Strategies how to Creative2 pages/≈550 words | MLA | Literature & Language | Essay |
- Biology:Beginning of Life 3 pages/≈825 words | APA | Health, Medicine, Nursing | Essay |