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Map Consolidation Data: The first step in an actual consolidation is to define how your subsidiary accounts map to your parent accounts. The mapping determines how your subsidiary balances roll up into the consolidated ledger.

Consolidated financial statements are used when the parent company holds a majority stake by controlling more than 50% of the subsidiary business. Parent companies that hold more than 20% qualify to use consolidated accounting. If a parent company holds less than a 20% stake, it must use equity method accounting.

Consolidated financial statements provide a true and fair view of an organisation's financial health across all divisions and subsidiaries. They are required when one company owns more than 50% of the outstanding common voting stock of another company, but there are many rules and regulations to account for.

Consolidation accounting is the process of combining the financial results of several subsidiary companies into the combined financial results of the parent company. This method is typically used when a parent entity owns more than 50% of the shares of another entity.

What is a consolidated balance sheet? A consolidated balance sheet is a financial statement that shows the financial position of a parent company and its subsidiary companies.

(c) an investment entity need not present consolidated financial statements if it is required, in accordance with paragraph 31 of this Ind AS, to measure all of its subsidiaries at fair value through profit or loss.

The following steps document the consolidation accounting process flow. Record Intercompany Loans.Charge Corporate Overhead.Charge Payables.Charge Payroll Expenses.Complete Adjusting Entries.Investigate Asset, Liability, and Equity Account Balances.Review Subsidiary Financial Statements.