Corporate Consolidation

⚠️ **Finance warning / Avertissement finance** : informational only, not investment advice. Consolidated statements are the group official reporting: a missed elimination double counts revenue and assets, a wrong non-controlling interest allocation misstates equity, there is a real risk of loss in any decision taken from misstated group figures, and no output here is a promise of return. Curated by Skill Harbor: the corporate consolidation skill of GAJETOso/financeskills. Use it to combine the financial results of a parent and its subsidiaries into a single set of statements under IFRS 10 or ASC 810, as if the group were one economic entity. The opening assessment maps the ownership structure first: which entities are controlled above 50 percent and consolidated, which sit in the 20 to 50 percent equity method band, and where non-controlling interests exist; then the intercompany landscape (sales, loans, management fees, and the unrealized profit sitting in inventory a subsidiary has not yet sold outside the group); then currency, where subsidiaries keep a different functional currency. The framework runs in a fixed priority order: standardization of accounting policies across subsidiaries, translation into the parent reporting currency, aggregation line by line, eliminations, and the non-controlling interest calculation. The technical steps eliminate intercompany receivables against payables on the balance sheet and intercompany sales against cost of sales in the income statement, eliminate the investment itself (debit the subsidiary equity accounts, credit the parent investment in subsidiary asset, with goodwill or a bargain purchase gain as the plug), and allocate the subsidiary net income and equity share to external owners. The deliverable is a consolidated financial package: a consolidation worksheet with parent, each subsidiary, eliminations and consolidated total columns, the consolidated profit or loss, balance sheet and cash flow statements, and a detailed intercompany log of every eliminated transaction kept for verification by the reviewers of the group accounts. From the GAJETOso/financeskills repository (MIT). Honest caveats: group statements are official filings, so have the worksheet, the eliminations and the non-controlling interest allocation checked by a qualified professional before any official use; the trial balances of every entity, the ownership percentages and the full intercompany transaction list are yours to supply and to verify, and the shipped calculate.py script should do the computations instead of mental arithmetic. Skill Harbor never reviews the code, review it yourself before use.