- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
In consolidation,
Share capital and share premium of subsidiary organisation is not shown to show an affect that all assets and liabilities are under control of parent entity.
Can you please explain this how not showing the equity section of subsidiary explain control over entity?As I explain in my free lectures, the consolidated SOFP is showing it as if it were one big company owned mainly by the shareholders of the parent company.
We include all the assets and liabilities of the subsidiary (which replaces the equity, because the equity is always equal to the net assets for all businesses, as explained in earlier lectures).
If the parent company does not own 100% of the subsidiary then the amount owed to the NCI is shown separately.
Have you watched my free lectures on this?
Yes, I watched your free lectures but I think I missed this part. Thank you tutor.
- The topic ‘Consolidation’ is closed to new replies.