consolidation adjustments


consolidation adjustments
Adjustments that need to be made in the process of the consolidation of the accounts of a group of organizations. If there have been intra-group transactions, such as sales from one subsidiary company to another, any profits or losses resulting from these transactions should be eliminated from the consolidated financial statements. For example, if one group undertaking has sold a fixed asset to another at a profit, the profit should be eliminated from both the profit and loss account and the consolidated balance sheet.

Accounting dictionary. 2014.

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  • consolidation — The process of combining and adjusting financial information from the individual financial statements of a parent undertaking and its subsidiaries to prepare consolidated financial statements. These statements should present financial information …   Accounting dictionary

  • consolidation accounting — The presentation of the *financial statements of two or more organizations as one economic unit. Consolidation accounting techniques require the combining of the financial statements of the individual organizations of a *business combination (i.e …   Auditor's dictionary

  • consolidated financial statements — consolidated accounts; = group accounts; = group financial statements The financial statements of a group of companies obtained by consolidation. These are required by the Companies Act and Financial Reporting Standard 2, Accounting for… …   Accounting dictionary

  • consolidated financial statements — consolidated accounts; group accounts; group financial statements The financial statements of a group of companies obtained by consolidation These are required by the Companies Act and Financial Reporting Standard 2, Accounting for Subsidiary… …   Big dictionary of business and management

  • intercompany transactions — intragroup transactions Transactions between the companies in a group. These may be in the form of charges or the transfer of goods or services. It is important in the preparation of consolidated financial statements that such transactions are… …   Accounting dictionary

  • consolidated cash-flow statement — The information contained in the individual cash flow statements of a group of undertakings combined by consolidation, subject to any consolidation adjustments. Cash flow statements are regulated by Financial Reporting Standard 1, Cash Flow… …   Accounting dictionary

  • consolidated income and expenditure account — The information contained in the individual income and expenditure accounts of a group of organizations combined by consolidation into a single document for the group. This is subject to any necessary consolidation adjustments …   Accounting dictionary

  • consolidated profit and loss account — A combination of the individual profit and loss accounts of the members of a group of organizations, subject to any consolidation adjustments. The consolidated profit and loss account must give a true and fair view of the profit and loss of the… …   Accounting dictionary

  • consolidated profit and loss account — A combination of the individual profit and loss accounts of the members of a group of organizations, subject to any consolidation adjustments. The consolidated profit and loss account must give a true and fair view of the profit and loss of the… …   Big dictionary of business and management

  • Consolidated —   In finance this normally means: According to the Dutch Act on Annual Accounts of Enterprises incorporated in the Dutch Civil a consolidated financial account is described as: The consolidated financial account is a statement in which the assets …   International financial encyclopaedia