Scope of consolidation of consolidated accounting statements, scope of consolidation of consolidated

Legal Analysis: The scope of consolidation of the consolidated financial statements should be determined on a control basis. These include:

1. If the parent company directly or indirectly owns more than half of the voting rights of the investee, indicating that the parent company can control the investee, the investee shall be recognized as a subsidiary and included in the scope of consolidation in the consolidated financial report. However, there is an exception where the evidence shows that the parent company cannot control the investee.

2. If the parent company owns half or less of the voting rights of the investee and meets one of the following conditions, the parent company shall be deemed to be able to control the investee, unless the evidence shows that the parent company cannot control the investee:

1) Owning more than half of the voting rights of the investee through agreements with other investors of the investee;

2) According to the company's constitution or agreement, it has the right to decide on the financial and operational policies of the investee;

3) the right to appoint and dismiss the majority of the board of directors or similar body of the investee;

4) Majority voting rights on the board of directors or similar body of the investee.

3. The parent company shall include all its subsidiaries, whether they are small-scale subsidiaries or subsidiaries with special business nature, into the scope of consolidation of the consolidated financial statements.

Legal basis: Accounting Standards for Business Enterprises

Article 44 The financial accounting report refers to the documents provided by the enterprise to the outside world that reflect the financial position of the enterprise on a specific date and the operating results, cash flow and other accounting information of the enterprise in a certain accounting period.

The financial accounting report includes the accounting statements and their notes and other relevant information and materials that should be disclosed in the financial accounting report. At a minimum, the accounting statements should include a balance sheet. Income statement, cash flow statement, etc.

Accounting statements prepared by small businesses can not include a cash flow statement.

Article 45 The balance sheet refers to the accounting statement that reflects the financial position of an enterprise on a specific date.

Article 46 The income statement refers to the accounting statement that reflects the operating results of an enterprise in a certain accounting period.

Article 47 The cash flow statement refers to the accounting statement that reflects the inflow and outflow of cash and cash equivalents of an enterprise in a certain accounting period.

Derivative question: What does a consolidated accounting statement include?

Consolidated accounting statements include the following:

1. Consolidated balance sheet;

2 Consolidated income statement;

3 Consolidated statement of changes in financial position;

4 Consolidated Statement of Income Distribution. The consolidated accounting statements are prepared on the basis of the accounting statements of the parent company and the subsidiaries included in the scope of consolidation (hereinafter referred to as subsidiaries included in the scope of consolidation) and other relevant information, and the amounts of each item are consolidated. For the purpose of preparing the consolidated financial statements, other relevant information provided by the subsidiary to the parent company includes:

1 The subsidiary adopts different accounting policies than the parent company;

2. Business dealings, creditor's rights and debts, investments, etc., with the parent company and other subsidiaries of the parent company;

3. Information related to the profit distribution of subsidiaries;

4. Detailed information on changes in the owner's equity of the subsidiary;

5. Other materials required for the preparation of consolidated financial statements.

Consolidated Financial Statements.

The scope of the merger is that the parent company directly owns more than half of the shares of the invested enterprise; The parent company indirectly owns or controls more than half of the shares of the invested enterprise; The parent company directly and indirectly owns or controls more than half of the shares of the invested enterprise.

The scope of consolidation that should not be included in the consolidated financial statements of the parent company is the atomic company that has been declared liquidated; Atomic companies that have been declared bankrupt; Other investees that the parent company cannot control.

Consolidated financial statements.

The scope of consolidation refers to the scope of subsidiaries included in the preparation of consolidated accounting statements, mainly clarifying which subsidiaries should be included in the scope of preparation of consolidated accounting statements and which subsidiaries should be excluded from the scope of preparation of consolidated accounting statements. Clarification of the scope of consolidation is a prerequisite for the preparation of consolidated accounting statements. Investee enterprises controlled by the parent company fall within the scope of preparation of consolidated accounting statements.

According to the regulations, the specific enterprises that should prepare consolidated accounting statements, the invested enterprises in which the parent company owns more than half of its equity capital, and other invested enterprises controlled by the parent company. The parent company shall include all its subsidiaries in the consolidated financial statements of the consolidated financial statements.

In this case, if the financial and operational policies of the investee are still determined by the Company, the restriction on the allocation of funds does not prevent the Company from exercising control over it, and it should be included in the scope of consolidation of the consolidated financial statements. Parent company and subsidiaryThe parent company refers to the enterprise (or entity) that has one or more subsidiaries. A sub-hundred company refers to an enterprise that is controlled by the parent company.

Specific application of control: The parent company directly or indirectly through a subsidiary owns more than half of the voting rights of the investee, indicating that the parent company can control the investee, and the investee should be recognized as a subsidiary and included in the scope of consolidation in the consolidated financial statements. However, there is an exception for the Friendship Bureau, where there is evidence that the parent company knows that it cannot control the investee.

The scope of consolidation of the consolidated financial statements is as follows:The parent company directly owns more than half of the shares of the invested enterprise.

The parent company indirectly owns or controls more than half of the shares of the invested enterprise;

The parent company directly and indirectly owns or controls more than half of the shares of the invested enterprise.

The following is an introduction to the accounting statements:

The accounting statement is a report document that summarizes and comprehensively reflects the daily accounting information in a certain form. Because the daily accounting data have the characteristics of being scattered, scattered, and large, in order to facilitate managers at all levels to grasp at a glance the economic activities and benefits of enterprises and units in a certain period, it is necessary to summarize and synthesize the daily accounting data in accordance with the format and caliber prescribed in a unified manner.

The current accounting statement is a systematic report file prepared by the accounting personnel of an enterprise according to the accounting records of a certain period (such as monthly, quarterly, and yearly) in accordance with the established format and type. With the expansion of business activities, the users of accounting statements have an increasing demand for accounting information, and the information provided by only a few accounting statements can no longer meet or directly meet their needs, so it is necessary to provide more information through notes and explanations other than the statements.

The prototype of accounting statements is some financial records and ledger books designed by the enterprise itself, which reflect the original purpose of the accounting statements for the owners of the enterprise to record and reflect the daily business activities, and these financial records are maintained and improved at will, accidentally, and intermittently.