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. of a *parent organization and its *subsidiaries), subject to *adjustments like the elimination of profits on transactions between the consolidated entities.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • 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 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… …   Accounting dictionary

  • Accounting software — is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system. It may be developed… …   Wikipedia

  • consolidation — I noun affiliation, aggregation, amalgamation, assemblage, association, centralization, coadunation, combination, compact, confederation, conjunction, conjuncture, consortium, federation, fusion, incorporation, integration, junction, league,… …   Law dictionary

  • Consolidation (business) — For other uses, see Amalgamation (disambiguation). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · …   Wikipedia

  • Consolidation — The combining of two or more firms to form an entirely new entity. The New York Times Financial Glossary * * * consolidation con‧sol‧i‧da‧tion [kənˌsɒlˈdeɪʆn ǁ ˌsɑːl ] noun [countable, uncountable] 1. ECONOMICS when companies combine in… …   Financial and business terms

  • consolidation — The combining of two or more firms to form an entirely new entity. Bloomberg Financial Dictionary A procedure whereby a number of small consignments are loaded together to form a single, larger consignment. This must be carried out as part of a… …   Financial and business terms

  • proportional consolidation — A method of consolidation used in group accounts in which subsidiaries are not fully owned; a proportionate share of each category of a joint venture s revenue, expenditure, assets, and liabilities is included line by line. This is a complex and… …   Accounting dictionary

  • exclusion of subsidiaries from consolidation — Subsidiary undertakings may be excluded from consolidation on the following grounds: (1) an individual subsidiary may be excluded from consolidation if its inclusion is not material for the purpose of giving a true and fair view; (2) an… …   Accounting dictionary

  • full consolidation — The method of consolidation in which 100% of each item of all subsidiary undertakings is brought into the consolidated financial statements of a group. This will include assets, liabilities, income, and expenses. If a subsidiary undertaking is… …   Accounting dictionary

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