Page 4 - Finac2 Test 1 Slides - 3. Intra-Group Transactions
P. 4

CONSOLIDATIONS AFTER THE DATE OF ACQUISITION




            Consolidation process









            • How do we get to consolidated financial statements

                position?



                    • End point = Starting point ± Pro-forma journal entries


            • The starting point is:



                    • 100% of current year complete pre‐closing TB of parent


                    • Added line by line to 100% of current year complete

                       pre‐closing TB of sub


                    • Example of result:

                           • 100% Sales of P + 100% Sales of S


                           • 100% PPE of P + 100% PPE of S




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