Tag Archives | Financial Statements

How to Prepare Funds Flow Statement: Meaning, Problems, Adjustments and Formula

Funds flow statement reflects the change in working capital during a period through those transactions which affect the funds - termed as 'cross transactions'. The change is shown as a 'consolidated figure'. However it is preferable to prepare the 'working capital statement' which shows the complete details of the contribution of each item of current asset and current liability towards [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Funds Flow Statement|Comments Off on How to Prepare Funds Flow Statement: Meaning, Problems, Adjustments and Formula

Intercompany Inventory Transactions | Consolidations | Accounting

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 an inventory transfer as a [...]

By |2018-05-16T07:35:57+00:00May 16, 2018|Intercompany Transactions|Comments Off on Intercompany Inventory Transactions | Consolidations | Accounting

Intercompany Land Transfer and Consolidation Process | Accounting

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 must then adjust the account [...]

By |2018-05-16T07:35:57+00:00May 16, 2018|Intercompany Transactions|Comments Off on Intercompany Land Transfer and Consolidation Process | Accounting
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