What is the issue of opening adjustment of the consolidated statements of business combinations unde

1. Accounting entries.

It can be seen that 80% of the equity is acquired free of charge, and if the above is used as the basis, the statements of the two companies are directly combined, and only the first offsetting entry is retained.

There is also an owner's interest involved.

Internal adjustments. As a comparison for 2011, of course, the report should include at least three tables. (Merger date) directly put the two tables together to offset the long-term equity investment of Company A.

and Company B Ownership Interest. (Period-end) normal financial treatment of business combination.

The above is only based on the data provided, and if there is an internal transaction, the internal transaction should start to be offset during the comparison period. Because of the continuity of the company, it is sufficient to offset only the unrealized internal transactions as of the reporting deadline (including comparative data).

2. The merger of the same control treats the consolidated subsidiary as a subsidiary of the company to some extent, and therefore the balance sheet of the subsidiary.

Although the opening number is before the date of purchase, it is still considered to be its own subsidiary at that time, so it is necessary to adjust its income statement.

It is also included in the scope of consolidation from the beginning of the fiscal year.

Clause. 1. From your accounting entries, it can be seen that 80% of the equity is obtained free of charge.

Second, (at the beginning of the period) if the above is the basis, the statements of the two companies are directly combined, and only the first offsetting entry is retained.

In addition, it involves the internal adjustment of the owner's equity. As a comparison for 2011, of course, the report should include at least three major data.

Table. Third, (on the merger date) directly combine the two tables together to offset the long-term equity investment of Company A and the owner's equity of Company B.

Fourth, (at the end of the period) normal financial treatment of business combinations.

The above is just based on the data you provide, if there is an internal transaction, the internal transaction should start to offset during the comparison period. Because.

The continuity of the company is sufficient only to offset the unrealized internal transactions as of the reporting deadline (including comparative data).

Search for Jinghua Tianchuang yourself, **There is an explanation.

Under the same control, the acquirer and the acquiree are under the control of the same parent company before the merger.

The preparation of the consolidated balance sheet is based on the individual balance sheets of the parent company and the subsidiaries of Yuanhuiyan, and is consolidated on the basis of the preparation of working paper offsetting entries. Practices vary from country to country.

The consolidated balance sheet has the following characteristics:

1. The value of each item of net assets after the merger is equal to the book value of the net assets of the parent company plus the fair value of the net assets of the subsidiary minus the amortization for the current period;

2. Goodwill is shown as unamortized at the end of the period;

3. The owner's equity items in the consolidated balance sheet are equal to the owner's equity items of the parent company;

4. The amount of retained profits on the consolidated balance sheet is shown according to the amount of retained profits at the end of the period in the consolidated retained income statement.

The main items that need to be offset when preparing the consolidated balance sheet are:

1) The equity investment project of the parent company in the subsidiary and the owner's equity project of the Zibiyuan Gonghail Imperial Division;

2) internal creditor's rights and debts between the parent company and its subsidiaries and between them;

3) Inventory items, i.e., unrealized internal sales profits included in the value of internally purchased inventories;

4) Fixed asset items (including the original price of fixed assets and accumulated depreciation items), that is, the unrealized internal sales profit included in the value of fixed assets purchased internally;

5) Intangible asset items, i.e., unrealized internal sales profits included in the value of internally purchased intangible assets;

6) Write-off of impairment provisions related to assets such as long-term equity investments, accounts receivable, inventories, fixed assets, and intangible assets.

lest the group use this to regulate profits.

To some extent, the consolidated subsidiary is regarded as its own subsidiary from the beginning of the company's incorporation, so the opening number of the subsidiary's balance sheet is considered to be its own subsidiary at that time, although the opening number of the subsidiary's balance sheet is before the date of purchase, it is still considered to be its own subsidiary at that time, so it needs to be adjusted, and its income statement is also included in the scope of consolidation from the beginning of the fiscal year.

For subsidiaries that are not under the same control, they are regarded as their own subsidiaries from the date of purchase, so if the beginning of the balance sheet is before the date of purchase, it is still not its own subsidiary at that time, so there is no need to adjust, and the income statement needs to be included in the consolidated statement only from the date of purchase.

<> in the consolidated statements, if one company becomes a subsidiary of another company, then the financial statements of the two companies need to be consolidated in the consolidated statements to show their financial position as a whole. In this case, the assets and liabilities under the same control need to be consolidated.

If you want to consolidate the financial statements of the newly added subsidiary and the parent company, you need to follow the steps below:

Consolidate the opening of the parent company's balance sheet with the opening of the subsidiary's balance sheet.

For similar items, such as cash, accounts receivable, accounts payable, etc., add up the amounts of the parent company and subsidiary.

For different categories of items, such as fixed assets, liabilities, share capital, etc., it is necessary to list the financial statements of the subsidiaries separately on the balance sheet for differentiation.

Finally, the financial statements of the parent company and subsidiaries are reported in the consolidated statements.

It is important to note that in the consolidated statements, transactions under the same control need to be offset to avoid double counting.

In the preparation of financial statements, adjustments should be made to the individual financial statements of subsidiaries based on the fair value of the assets and liabilities determined on the date of purchase.

Because subsidiaries are usually not adjusted to the fair value of assets or liabilities recognized by valuation after being acquired by the parent company, the financial statements issued by the subsidiary are still prepared on the basis of the original book value. In order to reflect the assets and liabilities of a subsidiary at fair value in the consolidated financial statements, it is necessary to prepare corresponding adjustment entries for the assets and liabilities of the subsidiary acquired by the business combination not under the same control, the difference between the fair value and the original book value, and adjust the financial statements of the subsidiary in the consolidated working papers, so that the individual statements of the subsidiary become statements at fair value.