A Technique of Consolidation
In our previous posts we have now looked at the topics of cancellation, minority interests and goodwill arising on consolidation. It is time to set out an approach to be used in tacking consolidated balance sheets.
The approach we recommend consists of three steps.
- Step one - Cancel items common to both balance sheets.
- Step two – Produce working for minority interests.
- Step three – Produce a goodwill working. Then produce working for capital and revenue reserves.