Adjusting entries consolidating statements


29-Sep-2016 17:57

Financial consolidation is the combining of data from different business entities in the consolidated financial statements.

Data from these business entities may differ even due to different structures of the chart of accounts, accounting policies and currencies used.

They have probably purchased many of them by acquiring entire companies. What rules must be satisfied for an acquiring company to record an intangible (previously owned by an acquired company) as an asset?

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Adjustments fall into one of five categories: accrued revenues, accrued expenses, unearned revenues, prepaid expenses, and depreciation.

There are also separate general ledger accounts for miscellaneous items that don't have their own column in the journals, but are entered in a "miscellaneous" column.



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