Consolidating financial

All of the subsidiary company's assets and liabilities appear on the parent company's balance sheet, and all of the subsidiary company's revenue, expenses, gains and losses appear on the parent company's income statement.

Consolidation is generally regarded as a period of indecision, which ends when the price of the asset moves above or below the prices in the trading pattern.Internally, the parent is free to treat the subsidiary as a completely separate entity, but it must consolidate its finances in statements prepared for outside observers, such as banks, regulators and potential investors.A company can have a controlling stake in another business without owning 100 percent of that business.If the parent and NCI pay more than the fair market value of the net assets (assets less liabilities), the excess amount is posted a goodwill asset account, and goodwill is moved into an expense account over time.A consolidation eliminates any transactions between the parent and subsidiary, or between the subsidiary and the NCI.

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