How To Prepare Consolidated Income Statement

Yesterday we had explained basic steps of prepare consolidated income statement.

How to prepare consolidated income statement. Create a consolidated income statement. Consolidated net income is reported on the consolidated income statement for periods after. Prepare the consolidated income statement to incorporate p and s for the year ended 31 march 20x9. This document will include all revenues earned and expenses incurred by the parent company and its subsidiaries.

This is the date on which control passed and hence thedate from which the results of. It shows the financial results of the parent company and its subsidiaries as if the group were a single company with multiple branches. What should be the consolidated revenue for the year ended 30 september 2012. Like the consolidated balance sheet this is done by simply adding the values from the companies independent income statements together.

Consolidated net income is the sum of net income of the parent company excluding any income from subsidiaries recognized in its individual financial statements plus net income of its subsidiaries determined after excluding unrealized gain in inventories income from intra group transactions etc. A 104 700 b 95 230 c 108 700 d 104 200 answer even though this question requires an extract from the consolidated income statement the principle is still the same as illustration 3 consolidate the. The trial balance of h ltd and s ltd are given below as on 31 3 2010. Consolidated financial statements is the financial statements of the overall group which represents the sum total of its parents and all of its subsidiaries and includes all three key financial statements income statement cash flow statement and balance sheet.

P acquired 75 of the issued ordinary share capital of s on 30november 20x8. Today we will clear these basic steps through an example. A parent company when it owns a significant stake in another company. In fact it is commonly used by single companies that have multiple.

P consolidated income statement for the year ended 31 december 20x9. In the consolidated statement of profit or loss any dividend income received from the associate is replaced by bringing in one line that shows the parent s share of the associate s profit. What is the consolidated financial statement. This is presented as share of profits of associate as a new heading immediately before the consolidated profit before tax.