Consolidated Financial Statement
TABLE OF CONTENTS
Introduction…………………………………………………………………………….....1
1.1 Relationship between Holding/parent company- subsidiary………………………….2
2.1 Consolidated Financial Statement…………………………………………………….4
3.1 The concept of Goodwill……………………………………………………………...5
3.1.1 Computation of Goodwill…………………………………………………………...6 3.1.2 Computation of negative Goodwill………………………………………………...7
4.1 The recommendation of the IASB……………………………………………………8
5.1 IFRS 36 Impairment of Assets………………………………………………………..9
6.1 IFRS 38 Intangible Assets…………………………………………………………...10 Reference…………………………………………………………………………….11
INTRODUCTION Companies are able to turn into parent companies through numerous of different means. The two most common ways are through (1) acquisition of smaller companies and (2) the spinoff or creation of subsidiaries. The term Holding/ Parent – subsidiary is not equivalent to the term “parent/child”. This is a significant tip. While the parent business enterprise incorporate its subsidiary corporation. International accounting standards state that a parent company to produce consolidated financial statements showing position and results of the whole group. Because consolidated and its subsidiaries, to gauge the overall worth of an entire group of companies as opposed to one company’s stand alone position. The intellectual capital of an enterprise typically includes a portfolio of diverse intangible assets. Goodwill is base on the company’s character and consumer faithfulness. Positive goodwill should be capitalized and classified as an asset on the balance sheet. Any negative goodwill excess of the fair values of the non-monetary assets of acquired should be recognized in the profit and loss account the periods expected to be benefited such as: Recognition and measurements, Amortization, Revaluation, and Negative goodwill. And the recommendation of the (IASB).
Introduction…………………………………………………………………………….....1
1.1 Relationship between Holding/parent company- subsidiary………………………….2
2.1 Consolidated Financial Statement…………………………………………………….4
3.1 The concept of Goodwill……………………………………………………………...5
3.1.1 Computation of Goodwill…………………………………………………………...6 3.1.2 Computation of negative Goodwill………………………………………………...7
4.1 The recommendation of the IASB……………………………………………………8
5.1 IFRS 36 Impairment of Assets………………………………………………………..9
6.1 IFRS 38 Intangible Assets…………………………………………………………...10 Reference…………………………………………………………………………….11
INTRODUCTION Companies are able to turn into parent companies through numerous of different means. The two most common ways are through (1) acquisition of smaller companies and (2) the spinoff or creation of subsidiaries. The term Holding/ Parent – subsidiary is not equivalent to the term “parent/child”. This is a significant tip. While the parent business enterprise incorporate its subsidiary corporation. International accounting standards state that a parent company to produce consolidated financial statements showing position and results of the whole group. Because consolidated and its subsidiaries, to gauge the overall worth of an entire group of companies as opposed to one company’s stand alone position. The intellectual capital of an enterprise typically includes a portfolio of diverse intangible assets. Goodwill is base on the company’s character and consumer faithfulness. Positive goodwill should be capitalized and classified as an asset on the balance sheet. Any negative goodwill excess of the fair values of the non-monetary assets of acquired should be recognized in the profit and loss account the periods expected to be benefited such as: Recognition and measurements, Amortization, Revaluation, and Negative goodwill. And the recommendation of the (IASB).