obsidian hydration dating - Consolidating two balance sheets

Note that the Investment in Sledge account is absent.

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A law firm is hopefully worth more than its desks, books, and computers.

Consider the value of a quality business reputation that has been established for years.

A casual review of business news won’t take long to reveal a story about one business buying another.

Such acquisitions are common and number in the thousands annually.

But, the assets and liabilities are not necessarily the simple sum of the amounts reported by the parent and subsidiary.

For example, the 5,000 Land account reflects the parent’s land plus the fair value of the subsidiary’s land (,000 0,000).

The process of can become complex, but the basic principles are not.

Below is the consolidated balance sheet for Premier and its subsidiary.

Therefore, accounting rules require that parent companies “consolidate” their financial reports and include all the assets, liabilities, and operating results of all controlled subsidiaries.

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