Consolidating an associate company

In general, a controlling stake is one that involves ownership of more than 50 percent of a business.

Prepare consolidated statement of financial position of Mommy Group as at 31 December 20X4.

Then we need to recognize any non-controlling interest and goodwill.

Mommy has owned 80% of Baby’s share and therefore, non-controlling interest owns .

You can deal with each adjustment in a separate column and as a result, your numbers will always balance.

The “exam-style” of making consolidated financial statements is good and easy when there are just a few issues or complications.