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How to Make a Consolidated Balance Sheet

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How to Make a Consolidated Balance Sheet

101,942 views October 25, 2017 11:34

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ChannelEdspira

Description from the creator

This video shows how to make a consolidated balance sheet when one company acquires 100% of another company. The consolidated balance sheet presents the assets and liabilities of the combined entity, but it is not as simple as adding the figures from the 2 separate balance sheets together (this would result in double-counting). To create the consolidated balance sheet, one must make a series of adjusting and eliminating entries that do the following:
1. Eliminate the purchaser's investment in the target
2. Eliminate the target's stockholders' equity accounts
3. Step up the target's assets to their fair value
4. Recognize any goodwill—
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About this tutorial

Edspira published this 11:34 video tutorial on October 25, 2017. It has been watched 101,942 times on YouTube.

Channel
Edspira
Category
Education
Duration
11:34
Published
October 25, 2017
Views
101,942
Likes
1,068

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Further reading

  • How to Prepare a Consolidated Balance Sheet | Bizfluent bizfluent.com

    Consolidated balance sheets, on the other hand, typically require a great deal of time and effort to put together because the parent company’s balance sheet is needed in addition to that of the subsidiary. Also, dependi…

  • Consolidated Balance Sheet and Steps to Prepare - Tally tallysolutions.com

    A consolidated balance sheet is usually prepared by the business operating as a group of companies that have more than one subsidiary and it portrays the combined details of assets and liabilities. Format and example of…

  • Consolidated balance sheet — AccountingTools accountingtools.com

    A consolidated balance sheet presents the financial position of an affiliated group of companies. The result is a balance sheet that shows the assets, liabilities, and equity of the group as though they were a single fi…

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