Acca financial Accounting (FA) Study Text ac ca (FA)

5 

The mechanics of consolidation 

You must be familiar with the standard workings required to prepare a 

consolidated statement of financial position. Whilst you are gaining familiarity 

and understanding with this process, it is useful to go through the standard 

workings in the same sequence. 

 

 

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Consolidated statement of financial position  

406

 

KAPLAN PUBLISHING

 

(W1) Establish the group structure

 

This is where you establish whether there is a parent

­

subsidiary 

relationship (i.e. does the parent have control?). You will need to identify 

the percentage shareholding of the parent and the non

­

controlling interest 

and the date the shares were acquired.