Consolidating financial statements worksheet
There are three ways to account for the ownership interest: cost, equity and acquisition methods.
The type of method depends on how much of the second company the first company owns.
If a company owns between 20 percent and 50 percent of another company's stock, the company uses the equity method.
The income statement, also known as the profit and loss statement, shows the profitability, or lack thereof, of a business over a set period.
The cash flow statement converts finances from accrual basis to cash basis and measures the flow of cash in and out of the business.
We use Timberline, but we prepare our financials each month on a consolidating spreadsheet.
Honestly, I loathe this option, I would like to convince them to move to another software that actually consolidates.