What is a Combined Financial Statement?

Consolidation of Accounting statement: It refers to the statement prepared by the parent company and including the relevant data of the accounting statements of all holding subsidiaries. This report can provide users of the report with the financial status and operating results of the company group. ^[1]

Consolidated Statement

Right!

There are generally three theories to follow in the consolidation theory for the preparation of consolidated accounting statements, namely

In order to prepare consolidated accounting statements, the parent company should

The limitations of the consolidated accounting statements are:

(1) The creditor's rights of the creditor's rights of the parent company and the subsidiary to the company are usually for independent legal entities, not for the enterprise group as an economic entity.

(2) Consolidated accounting statements combine the individual accounting statements of the parent company and the subsidiary companies. It is difficult for the minority shareholders of the subsidiary companies to directly obtain the useful information they need for decision-making, such as the subsidiaries they invest

To compile a consolidated accounting statement, you must first determine its scope of consolidation. The scope of consolidated financial statements refers to the scope of subsidiaries included in the consolidated financial statements. It mainly defines which subsidiaries should be included in the scope of consolidated financial statements and which subsidiaries should be excluded from the scope of consolidated financial statements. According to China's Accounting Standards for Business Enterprises No. 33-Consolidated Financial Statements, the scope of China's consolidated accounting statements is as follows:

The scope of consolidation of the consolidated financial statements shall be determined on the basis of control. Control refers to the power of an enterprise to determine the financial and operating policies of another enterprise and to obtain benefits from the operating activities of another enterprise. The parent company shall include all its subsidiaries in the consolidated scope of the consolidated financial statements.

The parent company directly or indirectly owns more than half of the investing unit's voting capital, which indicates that the parent company can control the invested unit, and the invested unit should be identified as a subsidiary and included in the scope of consolidation of the consolidated financial statements. However, there is evidence that the parent company cannot control the invested unit.

Voting capital refers to the capital that has the right to vote for an enterprise and can participate in the management and decision-making of the enterprise accordingly.

According to the relevant provisions of the Accounting Standards for Business Enterprises, the requirements for the preparation of consolidated financial statements are as follows:

1. Any parent company established in China and having one or more subsidiaries shall prepare consolidated accounting statements to comprehensively reflect the operating results, financial status and changes of the enterprise group formed by the parent company and the subsidiaries.

2. When preparing the consolidated financial statements, the parent company shall include all the domestic and overseas subsidiaries under its control into the scope of the consolidated financial statements.

1. Invested enterprises in which the parent company owns more than half (excluding half) of its equity capital, including:

(1) Invested enterprises that directly own more than half of their equity capital;

(2) Invested enterprises that indirectly own more than half of their equity capital;

(3) Invested enterprises with more than half of their equity capital directly and indirectly. Indirect ownership of more than half of the equity capital means that through the subsidiary, the subsidiary of the subsidiary owns more than half of its equity capital. Directly and indirectly owning more than half of its equity capital means that although the parent company only owns less than half of its equity capital, it owns more than half of its equity capital through its subsidiaries.

2. Other invested enterprises controlled by the parent company. Although the parent company does not hold more than half of its equity capital in the invested company, if the parent company and the invested company have any of the following circumstances, the invested company shall be included in the merger as a subsidiary of the parent company Consolidation scope of accounting statements:

(1) through agreements with other investors of the invested company, holding more than half of the voting rights of the invested company;

(2) have the right to control the financial and operating policies of the enterprise in accordance with the articles of association or agreements;

(3) The right to appoint and remove most members of similar power bodies such as the board of directors;

(4) Has more than half of the voting rights at the board or similar authority meeting.

3 When the parent company compiles the consolidated financial statements, the following subsidiaries may not be included in the scope of consolidation of the consolidated financial statements:

(1) Subsidiaries that have been shut down and transferred;

(2) In accordance with the bankruptcy procedures, the subsidiary has been declared cleaned up and rectified;

(3) Subsidiaries that have declared bankruptcy;

(4) Subsidiaries that are ready to sell recently and hold more than half of their equity capital in the short term;

(5) Subsidiaries with non-continuing owners' equity;

(6) Overseas subsidiaries that are subject to restrictions on foreign exchange control and other controls in their host countries, and whose fund management is restricted.

Consolidated accounting statements include the following:

1. Consolidated balance sheet;

2. Consolidated income statement

3 Consolidated statement of changes in financial position;

4 Consolidated profit distribution table.

4. The consolidated financial statements are prepared on the basis of the accounting statements of the parent company and the consolidated subsidiaries (hereinafter referred to as subsidiaries, which are included in the consolidated scope) and other relevant information, and the amounts of the consolidated items are prepared. In order to prepare consolidated financial statements, other relevant information provided by the subsidiary to the parent company includes:

1. The accounting policies adopted by subsidiaries are different from those of the parent company;

2. Information on business transactions, claims and debts, investments with the parent company and other subsidiaries of the parent company;

3 Information on profit distribution of subsidiaries;

4 Detailed information on changes in owners' equity of subsidiaries;

5. Other information required for preparing consolidated financial statements.

5. In order to compile consolidated financial statements, the parent company shall unify the final accounting date and accounting period of the parent company's and its subsidiary's accounting statements, so that the final accounting date and accounting period of the subsidiary's account and the final accounting date and accounting period of the parent company's accounting statement are consistent. In case of inconsistency, the parent company shall adjust the subsidiary's accounting statements in accordance with the final accounting date and accounting period of the parent company's own accounting statements, prepare consolidated financial statements with the adjusted subsidiary's financial statements, or require the subsidiary to compile and report in accordance with the requirements of the parent company. Accounting statements for the same accounting period.

6. The parent company shall unify the accounting policies adopted by the parent company and the subsidiaries so that the accounting policies adopted by the subsidiaries are consistent with the parent company. When the accounting policy adopted by a subsidiary is inconsistent with that of the parent company, the parent company shall make necessary adjustments to the subsidiary's accounting statements in accordance with the accounting policies prescribed by the parent company. However, when the accounting policies prescribed by the subsidiary and the parent company are not significantly different and have little impact on the financial position and operating results, the parent company may also directly use the accounting statement to prepare consolidated financial statements.

7. In order to prepare consolidated financial statements for the parent company, equity capital investment in subsidiaries must be accounted for using the equity method, and individual financial statements should be prepared in this way to provide basic data for the preparation of consolidated financial statements.

1. For changes in the owner's equity caused by the subsidiary's current profit and loss, the parent company should calculate and determine the amount it owns, and include it in the current investment profit and loss, and increase or decrease the long-term investment according to this amount, and adjust the long-term investment. Book value. When the parent company handles the accounting, in the case of increasing long-term investment, debit the "long-term investment" account and credit the "investment income" account; when reducing the long-term investment, debit the "investment income" account and credit " Long-term investment "subjects. When receiving the profit from the subsidiary, the parent company shall treat it as a long-term investment reduction. When performing accounting, debit subjects such as "bank deposits" and credit "long-term investment" subjects.

2. For reasons other than the current period's profit and loss, such as changes in the owner's equity of the subsidiary caused by accepting donations, revaluation and appreciation of statutory assets, and accepting foreign currency investment conversion differences, the parent company should calculate and determine the amount of ownership, and determine the amount in accordance with calculation Increase or decrease the amount of long-term investment, adjust the book value of long-term investment, and increase or decrease the amount of capital reserve at the same time.

(1) For changes in the owner's equity of subsidiaries caused by the company's acceptance of donations and statutory revaluation and appreciation of assets, the parent company should accept the donation and confirm the revaluation and appreciation of statutory assets when accounting processing is performed. "Investment" account, credit "Capital Reserve" account.

(2) For changes in owner's equity caused by the company's acceptance of foreign currency investment conversion differences, when the foreign currency investment conversion difference is the credit balance, the parent company should debit the "long-term investment" account and credit "capital" "Public reserve" account; when the foreign currency translation difference is the debit balance, the parent company should debit the "capital reserve" account and credit the "long-term investment" account.

8. For overseas subsidiaries' accounting statements expressed in foreign currencies, the parent company shall convert the amount of each item of the overseas subsidiary's accounting statements into the parent company's bookkeeping base currency in accordance with the following provisions, and convert it into the parent company's bookkeeping base currency. Preparation of consolidated accounting statements. For domestic subsidiaries that use foreign currencies other than the reporting currency of the parent company's reporting currency, their accounting statements should also be converted into accounting statements expressed in the reporting currency of the parent company's reporting currency in accordance with these regulations.

1. Balance sheet

(1) All assets and liabilities are converted into the reporting currency of the parent company in accordance with the market exchange rate at the date of the consolidated accounting statement.

(2) Except for "undistributed profits" items, all items of owners' equity are converted into the reporting currency of the parent company based on the market exchange rate at the time of occurrence.

(3) The "undistributed profit" item is listed as the amount in the converted profit distribution table.

(4) The total difference between the converted asset class, the liability class item and the owner's equity class item shall be separately listed as the statement translation difference after the undistributed profit item.

(5) The beginning of the year is shown based on the amount of the balance sheet after the previous year's conversion.

2. Income statement and profit distribution

(1) All items in the profit and loss statement and the items related to the balance sheet should be converted into the parent company's bookkeeping base currency based on the average exchange rate of the consolidated accounting statement for the accounting period, or they can be converted using the market exchange rate on the date of consolidation Base currency for the parent company. When the market exchange rate on the date of the final consolidated financial statements is used to convert into the reporting currency of the parent company, it shall be explained in the notes to the consolidated financial statements. The average exchange rate is determined based on the market exchange rate at the beginning and end of the current period, and other methods can also be used to determine it. Once the average exchange rate calculation method is adopted, it must be used continuously before and after the period, and cannot be changed at will. If changes are really needed, the reasons for the changes and the impact of the changes on the financial statements should be explained in the notes to the financial statements.

(2) The "net profit" item in the profit distribution statement is shown by the amount of the item in the profit and loss account after conversion.

(3) The "undistributed profit at the beginning of the year" item in the profit distribution table, the amount of the "undistributed profit" item at the end of the previous year after conversion is shown.

(4) The "undistributed profit" items in the profit distribution table are calculated and displayed according to the amount of other items in the converted profit distribution table.

(5) The actual number of the previous year is shown according to the amount of the profit and loss statement and profit distribution statement converted in the previous period.

3 Statement of Changes in Financial Position

(1) Relevant items of income and expenses are converted into the base currency of the parent company's accounting based on the average exchange rate (or market exchange rate) for the accounting period of the consolidated accounting statement.

(2) Items that increase or decrease long-term liabilities, increase or decrease long-term investments, and increase or decrease fixed assets, deferred assets, and intangible assets are translated into the reporting currency of the parent company in accordance with the market exchange rate on the date of the consolidated accounting statement.

(3) Items related to the net increase in capital are translated into the reporting currency of the parent company at the exchange rate at the time of occurrence.

(4) Other items are listed or calculated according to the amount of the corresponding items in the other statements of the converted subsidiary.

(5) The "Net Flow Increase" items in "Sources and Uses of Liquidity" are listed in accordance with "Net Flow Increase" in "Changes to Various Liquid Funds Items".

(6) When the balance of "Total Liquidity Sources" minus "Total Liquidity Utilization" is inconsistent with "Net Liquidity Increase", the difference is after the "Total Liquidity Use" item, and "Net Liquidity Increase" Before, the difference in the translation of the single-line statement was reflected.

Consolidated balance sheet

The consolidated balance sheet is prepared on the basis of the individual balance sheets of the parent company and the subsidiaries, and on the basis of offsetting the following items, the consolidated assets, liabilities and owner's equity items are prepared.

1. The amount of the parent company's equity capital investment in the subsidiary is offset by the share held by the parent company in the owner's equity of the subsidiary. For offsetting entries, please refer to the provisions of the consolidated profit distribution table in these regulations. Consolidation spreads that occur during offsetting are reflected separately in the consolidated balance sheet as consolidation spreads in long-term investment projects (the credit balance is expressed as a negative number). For mutual investment between subsidiaries, the parent company shall, in accordance with the above-mentioned practice, offset the amount of the equity capital investment project with the corresponding amount in the relevant items corresponding to the owner's equity of the other subsidiary.

2. The creditor's rights and debt items between the parent company, its subsidiaries, and its subsidiaries, including items such as receivables, payables, advance receipts, and advance payments, should offset each other. When preparing offsetting entries in the consolidated working paper, debit items such as payables and advance receipts, and credit items such as receivables and advance payments. For the parent company and its subsidiaries and subsidiaries holding each other's bonds, the parent company should also offset each other when preparing the consolidated accounting statements. When preparing offsetting entries in the consolidated working paper, debit the "bonds payable" item and credit the "long-term investment" or "short-term investment" items. The difference between the internal bond investment and the bonds payable offset in the long-term investment shall be treated as the combined spread. When the amount of bond investment in the long-term investment is higher than the corresponding amount of bonds payable, the offsetting entry should be debited and the "long-term investment" item should be debited; The amount is lower than the corresponding amount of bonds payable. When preparing the offsetting entry, the "long-term investment" item should be debited, and the "consolidated spread" item should be credited. After the parent company and the subsidiary company and the subsidiary company offset each other's accounts receivable and accounts payable with each other, the amount of bad debt provision made by the offset accounts receivable should also be offset. In the consolidated balance sheet, the provision for bad debts shall be stated in the amount accrued for the accounts receivable after offsetting. In the consolidated working paper, when preparing an offsetting entry to offset the bad debt provision for offsetting accounts receivable, debit the "bad debt preparation" item and credit the "administrative expense" item. For the amount of bad debt provision offset due to the internal accounts receivable offset in the preparation of the consolidated accounting statements in the previous accounting period, the "bad debt preparation" item should be debited when preparing the consolidated entry for the current accounting period to prepare the offset entry. , Credit the item "Undistributed profit at the beginning of the year". To offset the provision for bad debts due to the increase in internal receivables in the current period, the offsetting entries should be debited and the "management expenses" items should be credited when preparing the offsetting entries. The bad debt provision written off due to the decrease of the receivables is offset. When preparing the offset entry, the item of management expenses is debited and the item of bad debt provision is credited.

3 In the inventory items, the amount of unrealized internal sales profits arising from internal sales shall be offset, and shall be shown as the amount after offset. For offsetting entries, please refer to the relevant part of the consolidated income statement in these regulations.

4 In fixed assets and other related items, the amount of unrealized internal sales profits due to internal sales shall be offset and displayed as the offset amount. For offsetting entries, please refer to the relevant part of the consolidated income statement in these regulations.

5. Amounts in the owner's equity of subsidiaries that are not owned by the parent company should be treated as minority shareholders' equity. Prior to the consolidation of the owner's equity items in the balance sheet, they should be listed separately and reflected as a total.

6. The amount of undistributed profits in the owner's equity is listed based on the amount of undistributed profits at the end of the consolidated profit distribution statement.

X. Consolidated income statement

The consolidated profit and loss account shall be based on the profit and loss account of the parent company and the subsidiary, and shall be prepared on the basis of offsetting the following items.

1. Offset of internal sales revenue between parent company, subsidiary company and subsidiary company:

(1) When all internally sold goods are sold externally, the amount of internal sales income shall be offset in the consolidated sales revenue item, and the amount of the purchase cost incurred from the internal purchase of the goods shall be offset in the consolidated sales cost item ( (I.e. the amount of internal sales revenue of the selling company). When compiling offsetting entries in the consolidated working paper, debit the item operating income and credit the item operating costs.

(2) When all the internally sold goods have not been sold externally to form inventories, the amount of internal sales income shall be offset in the consolidated sales income item, and the unrealized internal sales profit contained in the internally sold goods shall be offset in the inventory item. Amount, offsetting the cost of goods sold internally in the consolidated cost of sales item (the amount of sales revenue of the company that sells the goods minus unrealized profits from internal sales). When compiling offsetting entries in the consolidated working paper, debit the "operating income" item, credit the "inventory" item (offset in the consolidated balance sheet) and the "operating cost" item. Unrealized internal sales profit is determined based on the sales gross profit margin of the company selling the goods multiplied by the amount of internal sales revenue. Gross profit margin of sales = (sales revenue-cost of sales) ÷ sales revenue × 100%

(3) In the case of partially sold goods sold internally, the amount of internal sales realized and the amount of unrealized internal sales shall be handled separately.

(4) Treatment of unrealized internal sales profit included in inventory in the previous accounting period

1) Inventories formed by internal sales that offset unrealized internal sales profits in the previous accounting period shall be treated as sales realized in the current period when the consolidated financial statements are prepared in the current period. The unrealized internal sales profits contained in the current period shall be treated in the current period. The preparation of consolidated financial statements is deemed to be a profit treatment for the current period. When compiling offsetting entries in the consolidated working papers, the amount of unrealized internal sales profits offset in the inventory of the consolidated accounting statements in the previous period shall be debited to the "undistributed profit at the beginning of the year" item and credited to the "operating cost" item.

2) The inventory carried over from the previous period shall be treated as the inventory purchased in the current period, and shall be used to offset internal sales revenue, internal cost of sales and unrealized internal sales profit in accordance with the conditions (1) to (3) above.

2. Offset of unrealized internal sales profits generated by the exchange of fixed assets between the parent company, its subsidiaries, and its subsidiaries. The fixed asset transaction between the parent company, the subsidiary company, and the subsidiary company refers to the relationship between the parent company and the subsidiary company, and one of the subsidiary companies sells its own product to the other, and the other party purchases the other company's product as a fixed asset. Asset purchase and sale activities.

(1) Elimination of unrealized internal sales profits included in depreciated fixed assets

1) The internal sales revenue and the unrealized internal sales profit included in the original fixed asset price item are offset with each other, that is, the amount of the product sales revenue is offset in the consolidated sales revenue project; in the consolidated sales cost project The amount of offsetting the cost of sales of the product; the amount of unrealized internal sales profits in the consolidated fixed asset original price item. When preparing the offsetting entry, debit the "operating income" item, and credit the "operating cost" and "original fixed asset price" items.

2) During the period of use of the fixed asset, the unrealized internal sales profit included in the original price of the fixed asset must be offset during the preparation of the consolidated financial statements until the fixed asset exits the enterprise group. When preparing the offsetting entry in the consolidated working paper, the item "Undistributed profit at the beginning of the year" should be debited, and the item "Original value of fixed assets" should be credited. The amount of internal sales profits.

(2) Offset of unrealized internal sales profits included in depreciated fixed assets

1) During the accounting period in which the fixed asset transaction occurs, the following offset processing shall be performed:

In the period when the fixed asset transaction occurs, the internal sales revenue should be offset against the internal sales cost and the unrealized internal sales profit included in the original fixed asset price, that is, the sales of the fixed asset transaction are offset in the consolidated sales revenue item. The amount of income; the amount of sales cost of the fixed asset transaction offset in the consolidated cost of sales item; the amount of unrealized internal sales profit of the original price of the fixed asset offset in the original fixed asset price item. When preparing the offsetting entry, debit the "operating income" item, and credit the "operating cost" and "original fixed asset price" items. When depreciation is made, the amount of unrealized internal sales profits included in the depreciation provided for the fixed assets shall be offset. The offset amount is the difference between the depreciation amount of the current fixed asset minus the depreciation amount based on the original price of the fixed asset that does not include unrealized internal sales profits. When the straight-line method is adopted, that is, the total unrealized internal sales profit included in the original price of the fixed asset divided by the period of use of the fixed asset. When compiling offsetting entries in the consolidated worksheet, debit "accumulated depreciation" items and credit "administrative expenses" and other items.

2) In the accounting period after the transaction of the fixed assets, until the time when the fixed assets are cleaned up and scrapped, the following offsets shall be made: the amount of unrealized internal sales profits included in the internal sales of fixed assets shall be offset. When compiling offsetting entries in the consolidated working paper, debit the item "Undistributed profit at the beginning of the year" and credit the item "Original price of fixed assets". The amount of unrealized internal sales profits included in the depreciation accrued from the internal purchase of fixed assets is offset. The offset amount is the difference between the depreciation amount of the current fixed asset minus the depreciation amount based on the original price of the fixed asset that does not include unrealized internal sales profits. When compiling offsetting entries in the consolidated worksheet, debit "accumulated depreciation" items and credit "administrative expenses" and other items. The unrealized internal sales profit included in the original price of internal sales of fixed assets shall be offset by the accumulated depreciation in the previous accounting period. When preparing the offsetting entry in the consolidated working paper, debit the "accumulated depreciation" item and credit the "undistributed profit at the beginning of the year" item.

3) When the fixed asset is scrapped and cleaned up, the total unrealized internal sales profit included in the original price of the fixed asset minus the unrealized internal sales profit included in the original price of the fixed asset before scrapped and cleaned up shall be included in the depreciation expenses of the previous periods. The balance after the amount (that is, the amount of realized internal sales profits) is offset. When preparing the offsetting entry in the consolidated working paper, debit the "undistributed profit at the beginning of the year" item, and credit the "administrative expense" item and the "non-operating expenditure" (or "non-operating income") item. The amount of the offsetting management expense item is the difference between the depreciation amount of the current fixed asset minus the depreciation amount based on the original price of the fixed asset that does not include unrealized internal sales profits.

(3) If there are not many fixed asset transactions between the parent company, its subsidiaries, and its subsidiaries, or its transactions have little impact on the financial status and operating results of the enterprise group, its fixed asset transactions may also be regarded as external transactions of the enterprise group , Not in accordance with the above provisions for offset processing.

3 The investment income incurred by the parent company, its subsidiaries, and its subsidiaries holding each other's bonds with each other shall offset their corresponding interest expenses. When compiling offsetting entries in the consolidated working paper, debit "investment income" items and credit "financial expenses" items.

4 The parent company's equity capital investment benefits of subsidiaries shall be offset. For the offsetting entries prepared in the consolidated working paper, refer to the relevant provisions of the consolidated profit distribution table in these regulations.

5. The balance of the "net profit" items of the subsidiaries after deducting the investment income of the parent company is the profit and loss of the minority shareholders for the period. For the offsetting entries prepared in the consolidated working paper, refer to the relevant provisions in the consolidated profit distribution table in these regulations. The minority shareholders 'profit and loss for the current period shall be separately listed in the consolidated profit and loss account as "minority shareholders' profit and loss", and listed before "net profit".

6. The balance of the total profit or loss minus the profit or loss held by the minority shareholders is net profit.

Eleven, consolidated profit distribution

The consolidated profit distribution statement is based on the data of the profit distribution statement of the parent company and the subsidiary, and is prepared by offsetting the items of the profit distribution statement of the subsidiary. In the preparation of the consolidated working paper, the following offset entries should be prepared for different situations:

1. For a wholly-owned subsidiary, the undistributed profit items at the beginning of the year in the profit distribution statement of the subsidiary, the paid-in capital items, capital reserve items, surplus reserve items, and investment income items in the parent company's income statement should be included in the subsidiary's balance sheet. With the parent company's equity capital investment project of the subsidiary, withdraw the surplus reserve (or statutory public reserve fund, statutory public welfare fund, withdraw any arbitrary provident fund, reserve fund and production development fund) in the profit distribution table of the subsidiary, or payable profits (or The distribution of dividends, dividends payable, dividends on preferred shares, dividends on ordinary shares) offset each other. When compiling offsetting entries in the consolidated working paper, debit "investment income", "undistributed profit at the beginning of the year", "paid capital", "capital reserve", "surplus reserve" items, and credit "long-term investments" "," Withdrawal of surplus reserve "(or withdraw from statutory provident fund, withdraw from statutory public welfare fund, withdraw from arbitrary provident fund, reserve funds and production development funds)," Profits payable "(or dividends distributed, dividends payable, dividends distributed on preferred shares, Distribution of common stock dividends) project. When an offsetting difference occurs as described above, the difference shall be treated as a combined spread. When the above offsetting entry debit amount is greater than the credit amount, the consolidation spread item should be credited; when the above offsetting entry debit amount is less than the credit amount, the consolidation spread item should be debited.

2. For non-wholly-owned subsidiaries, the undistributed profit items at the beginning of the year in the subsidiary's profit distribution statement, the paid-in capital items, capital reserve items, surplus reserve items, and investment income items in the parent company's income statement should be included in the subsidiary's balance sheet. , Minority shareholders 'profit and loss projects, and parent company and subsidiary equity capital investment projects, minority shareholders' equity projects, and subsidiary company profit distribution tables withdraw surplus reserves (or withdraw from statutory provident fund, withdraw statutory public welfare fund, withdraw any discretionary provident fund, reserve funds and Production Development Fund) projects, profit payable (or distributed dividends, dividends payable, distributed preferred stock dividends, distributed common stock dividends) projects offset each other. When compiling offsetting entries in the consolidated working paper, debit items such as "investment income", "minority shareholder gains and losses", "undistributed profits at the beginning of the year", "paid capital", "capital reserve", "surplus reserve" , Credit "long-term investment", "withdraw surplus reserve" (or withdraw statutory provident fund, withdraw statutory public welfare fund, withdraw any arbitrary provident fund, reserve fund and production development fund), "profit payable" (or dividends distributed, dividends payable, Distribution of preferred stock dividends, dividends of ordinary shares already distributed), "minority shareholders' equity" items. Among them, the amount of minority shareholders 'equity is calculated and determined based on the amount of subsidiary owners' equity minus the share held by the parent company. When an offsetting difference occurs as described above, the difference shall be treated as a combined spread. When the above offsetting entry debit amount is greater than the credit amount, the consolidation spread item should be credited; when the above offsetting entry debit amount is less than the credit amount, the consolidation spread item should be debited.

Statement of changes in consolidated financial position

The consolidated statement of changes in financial position is prepared on the basis of the consolidated balance sheet and consolidated income statement and other relevant information.

1. The profit and loss of minority shareholders for the current period should be treated as a source of liquidity (or offsetting the item of liquidity sources), and its amount should be separately reflected in the item of "minority shareholders' profit and loss" before the "fixed asset depreciation" item in the "current source of funds".

2. Minority shareholders increase their investment in subsidiaries as a source of working capital. The increase is reflected in the item Minority Shareholders Capital Increase after Net Capital Increase in Other Sources .

3 The distribution of profits by the subsidiaries to the minority shareholders should be treated as capital use. The amount of the distribution is between the "profit distribution" and "other uses" in the "liquidity use", and is reflected in the separate item "minority shareholder profit distribution".

XIII. Notes to consolidated accounting statements

In addition to the matters that should be noted in the consolidated financial statements, the consolidated financial statements should also note the following:

1. Names of subsidiaries, business nature and proportion of various types of equity held by the parent company included in the consolidated scope of the consolidated financial statements;

2. Changes in the increase and decrease of subsidiaries included in the consolidated accounting statements;

3 The circumstances of the subsidiaries that are not included in the consolidated scope of the consolidated financial statements (that is, the subsidiaries that are not included in the scope of consolidation as specified in Article 2, paragraph 3 of these regulations) (including the names and shareholding ratios) The reasons, their financial status and operating results, and the treatment of investments in subsidiaries not included in the scope of consolidation in the consolidated financial statements;

4 Information about non-subsidiaries included in the consolidated scope of the consolidated financial statements (that is, other investees included in the scope of consolidation as provided for in Article 2 (2) of these Provisions), including the name, shareholding ratio of the parent company, and reasons for inclusion ;

5. When the accounting policies of the subsidiary and the parent company are inconsistent, the method of treatment in the consolidated financial statements. When preparing consolidated financial statements without adjustment, the method of handling should be explained in the consolidated financial statements;

6. Included in the consolidated scope of the consolidated financial statements, the balance sheet and profit and loss statements of the subsidiaries that have significant differences between the operations and the parent company's operations.

7. Other matters that need to be explained in the notes to the consolidated financial statements.

14. The following terms used in these Provisions are defined as follows:

Consolidated accounting statements refer to the accounting statements prepared by the parent company, taking the enterprise group formed by the parent company and its subsidiaries as an accounting entity, and comprehensively reflecting the overall operating results, financial status and changes of the enterprise group.

The parent company refers to an investment enterprise that has control over the invested enterprise by investing in other enterprises.

Subsidiaries refer to investee companies that have control over another company, including investee companies whose parent company directly or indirectly controls more than half of their equity capital and investee companies controlled by other means.

Control right refers to the power that can control the financial and operating policies of an enterprise, and thereby obtain benefits from the business activities of the enterprise.

Equity capital refers to capital that can participate in the operation and management of an enterprise and have voting rights in operating decisions.

Accounting policies refer to the accounting principles, procedures and processing methods used by an enterprise in accounting and preparing accounting statements.

Minority shareholders 'equity refers to the share of owners' equity of subsidiaries that is owned by investors other than the parent company.

Foreign currency refers to currencies other than the reporting currency.

The translation of foreign currency accounting statements refers to the conversion of the subsidiary's accounting statements disclosed in currencies other than the parent company's reporting currency into the accounting statements of the parent company's reporting currency.

Internal transactions refer to transactions between parent companies, subsidiaries, and subsidiaries within the scope of an enterprise group composed of the parent company and all its subsidiaries.

Case analysis of consolidated accounting statements

Case 1: Case study of the scope of consolidation of consolidated accounting statements [2]

Example 1: There is a foreign trade company A, whose main business is garment export. However, in recent years, it has been affected by macroeconomic policies at home and abroad. The efficiency has been poor. In order to reverse the current situation, it has begun to enter the real estate market. A real estate company B has a capital of 100 million yuan, of which company A is a company in which company B has a shareholding of 30%, and does not have substantial control. However, Company A does not directly hold the equity of Company B, but directly holds the equity of Company B through Company D, another wholly-owned subsidiary of Company C, which has a 20% stake in Company A. Company D's other operating income was RMB 10 million. However, Company A has substantial control over Company C because the legal representatives of Company A, C, and D are all the same person. At the end of 2007's financial statements, Company A did not consolidate the statements of Company C, that is, Company C was an off-balance sheet company, and Company A reflected Company C as a long-term equity investment. Company C did not include Company D in the scope of the consolidated statement. Company C to Company D and Company D to Company B were reflected as long-term equity investments.

Analysis: According to the new standards, when the consolidated financial statements were issued in 2007, Company A and Company C dealt with the problem properly. The correct handling should be:

(1) Company A shall incorporate Company C into the scope of consolidation in accordance with the principle of control;

(2) Company C should undoubtedly consolidate the statement of Company D, because Company D is a wholly-owned subsidiary of company C, and company C has substantial control over it.

Example 2: Continued Example 1. With the continuous development of the real estate market, company A's grasp of the real estate market continues to increase. Company A merged with other companies to register a real estate company, Company E, which owns 60% of the equity of Company E; the equity is still held by Company D, a wholly-owned subsidiary of Company C, because Company A does not have a consolidated statement of company C. Natural Company E The assets and operating income cannot be reflected in the consolidated statement. In this regard, company H handled this way and transferred 60% of the equity of company E to another company A's holding company F, which solved the problem that company E's assets and operating income could not be merged.

Analysis: This practice of Company A itself proves that Company A has substantial control over Company C. Otherwise, how can Company 60 transfer its equity in Company E to Company F? At the end of the company's period, it is better to include Company C directly into the scope of consolidation, Company C will incorporate Company D into the scope of consolidation, and Company D merges Company E's statements. The company's equity is still reflected as a long-term equity investment, which is very clear and fully meets the new standards. Definition of the scope of consolidation of the consolidated financial statements. The new standard has been implemented in all large and medium-sized enterprises in 2008, but the understanding of the new standard needs to be deepened with the development of specific accounting services. Accounting can truly reflect the financial status and operating performance of the company, and financial management can Be a good staff for business management and decision-making.

Case 2: Analysis of working hours of Pingmei Group's consolidated accounting statements [3]

Pingdingshan Coal Industry (Group) Co., Ltd. (hereinafter referred to as Pingdingshan Coal Group) was formerly Pingdingshan Coal Mining Bureau. In 1996, it took the lead in restructuring the coal system. According to the management requirements at that time, it has been adopting the method of grading and summarizing statements to compile group companies Financial Statements. In 1998, the company to be listed was established in the form of a divestiture listing. At the end of 2000, it was formally separated from the group company. Therefore, the group company changed its consolidated financial statements to consolidated financial statements in 2001. In the process of transformation, we encountered common problems existing in large enterprise groups, and also faced individual problems in our enterprise groups. These problems have brought great difficulties to the work of consolidated accounting statements. How to properly solve these problems is the key to the work of consolidated accounting statements. After repeated research and clarification of ideas, Pingmei Group guided the relevant content of the "Enterprise Accounting System" and adopted flexible working methods and methods in accordance with the principles of preparing consolidated accounting statements to solve existing problems and finally achieved the preparation of consolidation. Requirements for accounting statements.

First, first straighten out the internal equity investment relationship of the group company

In the initial stage of the restructuring of Pingmei Group Corporation, during the restructuring operation of its subordinate second-level subsidiaries, due to the vague concept, some irregular investment behaviors were caused, which mainly manifested in three forms: First, the second-level subsidiary's investment in the second level The nature of the company is that the subsidiary company invests in the parent company in turn; the second is that some second-level branches invest in the construction of third-level small legal entities, but the second-level branch does not have the investment qualification; the third is between the subsidiaries that have no practical meaning Mutual investment behavior. The above internal equity investment relations have brought great difficulties to the consolidated accounting statements of the group company.

To this end, the above-mentioned irregular internal equity investment relations must be rationalized and analyzed item by item. Pingmei Group decided to liquidate its internal equity investment within a time limit. According to relevant regulations, the parent company is the investment entity of its subsidiary company, and the subsidiary company can also be used as the investment entity to conduct standardized investment activities. The second-level branch does not have the legal person status, and therefore cannot be used as an investment entity for investment activities. Pingmei Group has adopted effective clean-up measures. The first step is to transfer the branch's equity investment in the subsidiary to the group company as the parent company's equity investment in its subsidiary. The second step is to return the mutual investment between non-meaningful subsidiaries. The third step is to conduct a comprehensive mapping and special research on the investment of small legal entities invested and constructed by each branch company, and rationalize each situation. However, due to historical reasons and the special circumstances of the enterprise, some of the small legal entities established by the branch company have no better way to solve it, and can only maintain the status quo for the time being. But need to accurately grasp its basic information. Facilitate a targeted approach to the merger. After adopting the above measures, the group company's internal investment relationship is clearer, and it also meets the requirements of the Company Law on the number of investors, laying a good foundation for the consolidated accounting statements.

Design offset business processes for the needs of consolidated statements

The elimination of repeat business within the group is the principle and basis of consolidated accounting statements. Therefore, the correctness of offsetting entries will directly affect the quality of consolidated accounting statements. Pingmei Coal Group has 18 second-tier subsidiaries, 54 second-tier branches, and 12 second-tier branches to build third-tier subsidiaries. The volume of offsetting business is large. In order to ensure the smooth generation of consolidated statements, it is particularly important to design and optimize the offsetting business process. Under normal circumstances, gradual offsetting is used for subsidiaries, and the Group only offsets subsidiaries. However, the offsetting business of the three-tier subsidiary companies established by the branch cannot adopt the method of gradual offsetting, and the group must directly offset it, which makes it more difficult for the group's financial department to offset the workload. The Group not only collects the basic information and data required for the offsetting entries of the secondary subsidiaries, but also collects the necessary data and data for the offsetting entries of the subsidiaries of the branch. This special situation should be fully taken into account when designing the offset business process, and the final confirmation from the consolidated unit-the capital contribution ratio-the calculation of investment income-equity offset-internal sales offset-investment income offset-internal transactions offset- Unified accounting policy adjustment-offsetting business process for preparing working papers for consolidated financial statements. The author believes that the scientifically optimized offsetting business process is the fundamental guarantee for the smooth preparation of consolidated accounting statements.

Third, the flexible selection of consolidated accounting statements

The scale of Pingmei Group is relatively large, and there are a large number of households included in the group company's summary report. It has been reported hierarchically and gradually. Report. However, after changing to consolidated accounting statements, due to the special situation of a second-level branch building a third-level subsidiary, if the layered summary method is completely eliminated in accordance with the level, the parent company summary report produced will have the following results : Such as minority shareholders' equity, investment loss has not been confirmed, etc. It is too difficult and unrealistic to roll it all in a mesh. Therefore, a single summary method cannot meet the needs of consolidated accounting statements. Pingmei Coal Group decided to adopt a combination of layered summary and network summary to include the third-level subsidiary part of the second-level branch company as a single household in the second level. Subsidiary report summary range, generating subsidiary summary report, and the second-level branch part is included in the parent company summary report range. After the parent and subsidiary statements are summarized, according to the offsetting entries and the consolidated accounting statement requirements, the working papers of the relevant statements are prepared, and finally the consolidated accounting statements are produced.

Fourth, the group company's financial department breaks the traditional internal division of business division of labor model

For a long time, the internal sections of the Finance Department were set up in accordance with the content of accounting calculations. In the process of offsetting consolidated accounting statements, there was a phenomenon of mutual crap and shirk. The progress of the report has been affected to varying degrees. In response to this phenomenon, it is necessary to break the original structure, integrate the business of each department according to the offsetting business process, and concentrate the main offsetting work in one department. Work is scattered. Practice has proved that in this way, the offsetting work of the consolidated accounting statements becomes smoother.

Consolidated accounting statements are relatively complicated in accounting operations. Due to historical reasons, the irregularities in institutional setup and investment behavior have brought great trouble to accounting. Due to the many problems faced by state-owned enterprises, Pingmei Group is facing a problem that cannot change history. It can only use the "Enterprise Accounting System" as a guide to grasp the principles of consolidated accounting statements and optimize the work in accordance with the actual situation of the enterprise Procedures, choose correct and convenient working methods, properly handle special accounting matters, and ensure the successful completion of consolidated accounting statements. Provide accounting information using departments with true and comprehensive accounting statements that reflect the financial status, operating results and cash flows of the enterprise group. At the same time, Pingmei Group attaches great importance to seeking solutions to problems left over by history. Strictly follow the requirements of the "Company Law" to gradually rationalize investment behaviors and institutional settings to reduce the work difficulty of accountants and also benefit the healthy development of group companies. ^[2]

What is a Combined Financial Statement?

Consolidated Statement

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