Free dating site lindau com - Is there any risk to consolidating financial statements

Generally, registrants shall not consolidate any entity whose financial statements are as of a date or for periods substantially different from those of the registrant.

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Furthermore, recognition should be given by disclosure or otherwise to the effect of intervening events which materially affect the financial position or results of operations.

Notwithstanding the 93-day provision specified in paragraph (b)(1) of this section, in connection with the retroactive combination of financial statements of entities following a combination between entities under common control, the financial statements of the constituents may be combined even if their respective fiscal periods do not end within 93 days, except that the financial statements for the latest fiscal year shall be recast to dates which do not differ by more than 93 days, if practicable.

This information is also reported on the income statement of the parent company.

This is used when the parent company holds a majority stake by controlling more than 50% of the subsidiary business.

Disclosure shall be made of the periods combined and of the sales or revenues, net income before extraordinary items and net income of any interim periods excluded from or included more than once in results of operations as a result of such recasting.

Registrants shall not consolidate any subsidiary or group of subsidiaries of a registrant subject to the Bank Holding Company Act of 1956 as amended as to which (1) a decision requiring divestiture has been made, or (2) there is substantial likelihood that divestiture will be necessary in order to comply with provisions of the Bank Holding Company Act.In consolidated accounting, the information from a parent company and its subsidiaries is treated as though it comes from a single entity.The cumulative assets from the business, as well as any revenue or expenses, are recorded on the balance sheet of the parent company.Businesses consolidate when two or more small businesses combine to form one larger organization.Also referred to as amalgamation, consolidation can result in the creation of an entirely new business entity or a subsidiary of a larger firm.Where the difference is not more than 93 days, it is usually acceptable to use, for consolidation purposes, such entity's statements for its fiscal period.

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