Consolidation Worksheet Basics
Purpose of Worksheet Entries
Consolidation entries are prepared on worksheets and are not recorded in the accounting records of either company. Their purpose is to eliminate duplicate accounts and intercompany balances.
- Eliminate investment account.
- Eliminate subsidiary equity.
- Adjust fair value allocations.
- Recognize goodwill.
- Record noncontrolling interest.
Note
Worksheet entries affect only consolidated financial statements and not the books of individual companies.
Summary
Consolidation worksheets provide a structured approach for preparing group financial statements.