Ekonomske ideje i praksa | broj 6 | septembar 2012.
a) T he bookkeeping amount of the parent investment in each subsidiary and the parent part of the equity of each subsidiary get eliminated; b) Inter-group accounts and inter-group transactions, including sales, expenses and dividends, are eliminated in full; c) Unrealized profits arising from inter-group transactions, which are included in the bookkeeping amount of assets such as inventories and fixed assets, are eliminated in full; d) Unrealized losses resulting from inter-group transactions; that are deducted when we get at the bookkeeping amount of assets are also eliminated unless costs can be compensated; e) Time differences arising from the elimination of unrealized profits and losses resulting from inter-group transactions have been processed in accordance with IAS 12, Income Taxes; f) Minority interests in net profit of consolidated subsidiaries for the reporting period are identified and aligned with the profit of the group to arrive at net income attributable to holders of the parent, and g) Minority interests in net assets of consolidated subsidiaries are identified and presented in consolidated balance sheet separately from liabilities and the parent shareholders' equity. Minority interests in net assets consist of: (I) The amount on the date of the original merger calculated in accordance with International Accounting Standard 22, Accounting for business mergers, and (II) The minority's share of equity movements from the date of the merger. The process of consolidation of the financial statements is operationally implemented in special consolidation work-notes and is carried out in several phases as follows: 1. determining the cost of investment in shares of a subsidiary (or associate) entrepreneurs, 2. determining the bookkeeping value of acquired shares, 3. determining the difference between investment cost and the bookkeeping value of acquired shares, 4. recording an acquisition transaction of subsidiary in a parent main book 5. implementation of the elimination entries and recording the difference between the acquisition cost and bookkeeping value of acquired shares of the subsidiary company, 6. creation of work-notes for the consolidation of financial statements and 7. the preparation of consolidated financial statements. The financial statements of the parent and its subsidiaries get added at the same items as if they were one accounting entity; mutual transactions get eliminated. Consolidation work-notes represent working material necessary for the consolidation of financial statements. They contain items of the financial statements both of the parent company and its subsidiaries that are consolidated. Consolidation is based on adding and eliminating or cancellation of inter-company items. In the consolidation work-notes special columns are provided for elimination entries. The last column represents the result of consolidation of each financial item of the consolidated report.
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