Český finanční a účetní časopis 2015(3):24-42 | DOI: 10.18267/j.cfuc.448

Preparation of Consolidated Financial Statement of the Group with Cyclic Interests among Separate Entities

Marie Zelenková
Ing. Marie Zelenková, Ph.D. - odborná asistentka; Katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <zelenm@vse.cz>.

The paper deals with preparation of consolidated financial statements by the group with cyclic interests among three separate entities that constitute this group. The paper is focused on potential difficulties in reporting of consolidated equity and interests (shares) that were issued within the group and are in full or partly held by the group. The paper responses to the next fundamental questions: What is the amount of consolidated equity and what is the correct way to display these intra-group interests (shares) issued and hold by one of the separate entities included in the group. Effects of proposed solution are demonstrated in illustrative example.

Keywords: Subsidiary; Consolidated financial statements; Parent entity; Full consolidation method; Group; Intra-group transactions.
JEL classification: M41

Published: October 1, 2015  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Zelenková, M. (2015). Preparation of Consolidated Financial Statement of the Group with Cyclic Interests among Separate Entities. Czech Financial and Accounting Journal, 2015(3), 24-42. doi: 10.18267/j.cfuc.448
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Fernandez, J. M. (1993): Consolidación de estados constables. Madrid, Alfa Centauro, 1993.
    2. Salmi, T. - Heikkilä M. (1978): Determination of Majority and Minority Interest. Percentages for Consolidated Financial Statements. Liiketaloudellinen Aikakauskirja. Finnish Journal of Business Economics, 1978, special edition 1, str. 8-28.
    3. Strouhal, J. (2011): Účetní závěrka. Praha, Wolters Kluwer, 2011.
    4. Taylor, P. A. (1996): Consolidated financial reporting. London, Paul Chapman, 1996. Go to original source...
    5. Weil, R. L. (1973): Reciprocal or Mutual Holdings: Allocating Earnings and Selecting the Accounting Method. Accounting Review, 1973, roč. 48, č. 4, s. 749-758.
    6. Zelenka, V. (2006): Goodwill, principy vykazování v podniku. Praha, Ekopress, 2006.
    7. Zelenka, V. - Zelenková, M. (2011): Základy konsolidačních metod. Finanční řízení & controlling v praxi, 2011, roč. 2, č. 7-8, s. 33-38. Go to original source...
    8. Zelenka, V. - Zelenková, M. (2013): Konsolidace účetních výkazů. Principy a praktické aplikace. Praha, Ekopress, 2013.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content