Consolidating income statements under age dating in california

Posted by / 28-Jul-2016 11:03

Consolidating income statements

NEP acquires all of the stock of Midwest Gas Corporation (MGC). NEP is the parent company and MGC is the subsidiary company.

Each of these corporations will continue to operate its respective business and each will issue its own financial statements.

(Since the sales of electricity from NEP to MGC and the sales of gas from MGC to NEP are not earned outside of the economic entity they are eliminated.) The consolidated income statement will also report all of the expenses that were incurred outside of the economic entity.

Below there are statements of financial positions of both Mommy and Baby at 31 December 20X4.

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

Most major corporations comprise numerous companies bought along the way to create their empires.

The financial statement reflects the financial results for all the entities it bought as well as the original assets of the company.

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