FASB Statement No. 95, “Statement of Cash Flows,” mandates that companies include a statement of cash flows among their financial statements. The consolidated statement of cash flows is not prepared from the individual cash flow statements of the separate companies. Instead, the income statements and balance sheets are first brought together on the worksheet. The […]
Consolidated Statement of Cash Flows | Business Combinations | Accounting
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Intercompany Inventory Transactions | Consolidations | Accounting
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Companies that make up a business combination frequently retain their legal identities as separate operating centers and maintain their own record-keeping. Thus, inventory sales between these companies trigger the independent accounting systems of both parties. The seller duly records revenue, and the buyer simultaneously enters the purchase into its accounts. For internal reporting purposes, recording […]
Intercompany Land Transfer and Consolidation Process | Accounting
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Although not as prevalent as inventory transactions, intercompany sales of other assets occur occasionally. Accounting for Land Transactions: The consolidation procedures necessitated by intercompany land transfers partially parallel those for intercompany inventory. As with inventory, the sale of land creates a series of effects on the individual records of the two companies. The worksheet process […]