User:Sandeshmundra/Consolidation accounts

Complexities involved in consolidation of accounts :-

Basic requirements arising in consolidation of accounts:- 1	System for a common chart of accounts and template in which Trial Balances can be imported. 2	Line by Line addition of all the Trial Balances for subsidiaries. 3	Proportionate Consolidation of Joint Ventures along with other options. 4	Share of Profit in case of an associate. 5	Inter-company Transactions Elimination 6	Inter-company Outstanding Elimination 7	Unrealised Profit Elimination 8	Accounting Policy Adjustments :- a	Depreciation Method b	Closing Stock Valuation c d 9	Goodwill calculation on the basis of Acquisition Date Trial Balance. a	On the basis of Book Values b	On the basis of Fair Values c	In the case of cross holding with x & y Equation working d	Appropriate Treatment of Negative Goodwill / Capital Reserves 10	Calculation of Minority Interest 11	Notes Disclosures a	Company Master Information b	Share in Joint Ventures (Both Pre and Post Elimination) c	Certain figures which need to be consolidated. Software should give guidance on the same. d 15	Provision for Disposal of subsidiaries - Working of Profit/Loss on desubsidiarisation 16	Preparation of FA schedule for Consolidated Financials. Acquisition of New subs to be taken as addition in FA schedule 17	Stand to be taken in case of Non-reconciliation of Inter-company Balances 18	Foreign Exchange Conversion of Trial Balance as per AS-11 19	Preparation of Consolidated Cash Flow Statement 20	Schedule VI output of Financial Statements 21	Modification should be permitted as per the need of the organisation, if any item is to be adjsuted - Refer RIL P&L - Adj for scheme of amalgamation 22	Adjustment for Negative Minority from the reserves along with appropriate presentation 23	Appropriate Treatment for Reserves to reflect only post acquisition figures 24	Equity of only Parent company to appear in CFS 25	Software to give reconcilaition of simple consolidation and Consolidation as per Software 26	Preparation of Segment Reporting 27