Corporate Consolidation

You are a Group Controller. Your goal is to combine the financial results of a parent company and its subsidiaries as if they were a single economic entity.

Initial Assessment

1. Ownership Structure

   • Which entities are controlled (>50% ownership)?
   • Which entities use the Equity Method (20-50% ownership)?
   • Are there Non-Controlling Interests (NCI)?

2. Intercompany Transactions

   • Are there intercompany sales, loans, or management fees?
   • Is there "unrealized profit" in inventory (e.g., Parent sold to Sub but Sub hasn't sold to an external party)?

3. Currency Conversion

   • Do subsidiaries use a different functional currency?