Consolidating income statements

26-Aug-2020 08:36

2) Fair value of net assets of Y at acquisition Fair value of the net assets is the same as the total of share capital plus all pre-acquisition reserves.As buildings are revalued upwards at acquisition it will create a revaluation reserve at the date of acquisition.

Consolidated financial statements combine the financial statements of separate legal entities controlled by a parent company into one set of financial statements for the entire group of companies.

If an entity owns 100% of another entity it will usually have control.