How to prepare a work of consolidation of three-part document

A work of consolidating an accounting document is used to display how a company consolidates its assets after it acquires another, typically small companies. The three parts consolidation working paper shows the synthesis of three different other financial critical for acquisition: profit and loss account, statement of retained earnings and balance. Drafting a working document consolidated is the first step in establishing a new financial records system. The two companies found in separate files, even immediately after the acquisition, but now must unite as a company and hold a series of documents. Working paper that three parts consolidation is the first of these documents to be created.Difficulty: moderately ChallengingInstructionsThings ll need: financial records of Companies1Divide both in three equal horizontal sections paper. Refer to the upper part of the paper to the consolidated profit- and loss. Name the central part of the result State consolidated retained. Use the last section to the consolidated balance sheet. The paper is organized in this way because first calculated income tax for the return of profits not distributed numbers and then balance. Work flow below on the page, links to right 2Gather information leaves the income of the individual companies are connected. Use the latest information provided by their accounting departments or annual investor if they are public companies. 3Create profit and loss account for the two companies as if they were that the companies are available. Combine a single value for each term of Office of receivables, revenue and expenditure of each company to CREErstellen. Write these words in the amount of income of the worksblatts. Use these values to your way into the worksheet work, fill the required values for the retained earnings according to the statement and balance sheet terms, Cesque benefits distributed, active and cost of goods sold. 4Make entered the Commission staff working paper called "remove entries" if were and types between those two companies after the purchase but replaced before the consolidation of the working document. An example might be that the company has acquired $10 materials company (b). Commission staff consolidated company B in the company, to keep the books appears this transaction for the purposes which will remove records, but an entry shows also displayed a cash flows of $10. If remove entries are not made, it seems as if society gains when simply moves resources around the company.