Consolidating financial statements different year ends Tiava web cam
CEU will use the Base period, which is Period 12 based upon the report definition and CEE will use Base – 6, which is Period 6. In deciding upon consolidation policy, the registrant must consider what financial presentation is most meaningful in the circumstances and should follow in the consolidated financial statements principles of inclusion or exclusion which will clearly exhibit the financial position and results of operations of the registrant.
In any case, the disclosures required by § 210.3A-03 should clearly explain the accounting policies followed by the registrant in this area, including the circumstances involved in any departure from the normal practice of consolidating majority owned subsidiaries and not consolidating entities that are less than majority owned.
Among the factors that the registrant should consider in determining the most meaningful presentation are the following: requires a careful analysis of the facts and circumstances of a particular relationship among entities.
Sometimes, different companies will be using different fiscal calendars, but you may still want to create consolidated financial statements for these companies.
This blog (3rd in a series of 7), will show you how to create consolidated reports with varying fiscal calendars. The important thing to consider when designing the column definition for multiple companies with differing fiscal periods is what company will be assigned in the report definition.
In rare situations, consolidation of a majority owned subsidiary may not result in a fair presentation, because the registrant, in substance, does not have a controlling financial interest (for example, when the subsidiary is in legal reorganization or in bankruptcy).
In other situations, consolidation of an entity, notwithstanding the lack of technical majority ownership, is necessary to present fairly the financial position and results of operations of the registrant, because of the existence of a parent-subsidiary relationship by means other than record ownership of voting stock.