Consolidation Accounting ➡️ Corporate and Financial Management

Why do you consolidate legal entities? A larger business generally speaking is made up multiple entities which reflect a full economic entity.
What are you consolidating? You are consolidating entities that you control and/or have power over which combines assets, liabilities, revenue and expenses along with eliminating any intercompany activity.
When do you consolidate financial? There are various reasons to consolidate a full economic entity, but several include: financing, audits, equity raises, public company reporting, etc.
How do you consolidate business entities? Follow ASC 810 which defines how a parent entity should consolidate controlling financial interest either by a voting interest or by variable interest.
Videos to that support this video:
What are Consolidated Financial Statements? Part 1
• Introduction to Consol...
What do you eliminate when Consolidating Financial Statements? Part 2
• Elimination Entries wh...
Noncontrolling Interest: What to consider when Consolidating Financial Statements - Part 3
• Accounting for Non-con...
From Chaos to Clarity: Navigating Consolidation Accounting - Part 4
• Pulling Together Conso...
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