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Consolidating balance sheet definition

Then we need to recognize any non-controlling interest and goodwill.

Mommy has owned 80% of Baby’s share and therefore, non-controlling interest owns .

In our case study, combined numbers looks as follows: Of course, there are some strange and redundant numbers, for example both Mommy’s and Baby’s share capital, but we haven’t finished yet!

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It’s very easy when a parent (Mommy) and a subsidiary (Baby) use the same format of the statement of financial position – you just add Mommy’s PPE and Baby’s PPE, Mommy’s cash and Baby’s cash balance, etc. It’s a full IFRS learning package with more than 40 hours of private video tutorials, more than 140 IFRS case studies solved in Excel, more than 180 pages of handouts and many bonuses included.

If you’d like to learn more about goodwill, please refer to the article about IFRS 3 Business Combinations. Please don’t forget that I have transferred this journal entry into our consolidation worksheet and it looks as follows: Parents and subsidiaries trade with each other very often.

However, when you look at both parent and subsidiary as at 1 company, which is the purpose of consolidation, then you find out that there’s no transaction at all.

It will also report all of the liabilities of the economic entity.

(Amounts owed and receivable between NEP and MGC are eliminated in the consolidated balance sheet.) This is a very brief overview of consolidated financial statements.


  1. Consolidated Balance Sheet. A consolidated balance sheet presents the assets and. The parent company handles this by consolidating the balance sheet as.

  2. The consolidating balance sheet provides more information to the users about the company's balance sheet account details. The report contains the consolidated data.

  3. There are a few differences between balance sheet and consolidated balance sheet. Definition of Consolidated Balance Sheet.

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