F3 - Combined Financial Statements

Question 1

When are combined financial statements prepared?

Answer 1

• Companies are under common control.
• Companies are under common management.
• Unconsolidated subsidiaries are combined.

Question 2

When preparing combined financial statements, identify the requirements.

Answer 2

• Intercompany transactions and balances among these companies are eliminated.
• Noncontrolling interests treated like consolidated financial statements.
• Capital stock and retained earnings are added across, not eliminated.
• Income satatements are added across.