Consolidating financial statements excel
This information for each subsidiary is then combined using consolidation software to create consolidated financial reports that represent the financial position of the parent company.
How Consolidated Financial Reports Are Prepared Financial consolidation software is typically used to prepare consolidated financial reports because it is not as simple as adding up the financial statements from each subsidiary.
For example, let's assume that Northern Electric Power (NEP) is an electric utility with its stock traded on a stock exchange.
NEP acquires all of the stock of Midwest Gas Corporation (MGC). NEP is the parent company and MGC is the subsidiary company.
(Since the purchases of electricity by MGC from NEP and the purchases of gas by NEP from MGC did not occur outside of the economic entity they are also eliminated.) The .
Since Quick Books for Mac does not work with Marketplace programs, you have to use Option 2 if you are currently using this version (applies to US only).
Consolidated financial statements combine the financial statements of separate legal entities controlled by a parent company into one set of financial statements for the entire group of companies.
These statements are prepared for an individual business and provide a snapshot of the performance of the business for a specific period – monthly, quarterly, yearly, etc.
These reports typically include a balance sheet, income statement, statement of cash flow and a shareholder equity report.
If the divisions are separate legal entities, even if wholly owned, you should have separate Quick Books accounts for each company.