Topic #2: The Accounting Process of Consolidations
Topic 2: This Discussion will help you better understand and locate the consolidation process. First, visit the website of your favorite company and under investor information, download the annual report of the firm and look it over. Once obtained, answer the following questions:
- What is a financial statement for corporate accounting purposes?
- When are consolidations needed?
- At what point in the accounting process are consolidations preformed? (e.g., before or after the component financial statements are issued)
- Who performs the consolidations?
- Based on your annual report, how many subsidiaries and parents are listed on the statements?
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