⏱TIMESTAMPS 00:00 - Intro 00:09 - Purpose & Meaning 06:26 - Amalgamation vs Consolidation 08:53 - Control Assessment 11:45 - Minority Interest 15:53 - Net Assets 17:54 - Intra Group Transactions 24:18 - Cost of Control 28:13 - Pre & Post Acquisition Profits 1:00:13 - 4 Working Notes
@AYON SAHA when multiple companies join to form a new entity that is consolidation ... when a 2 entity combines and has identity exist only for one among them its merger ...... amalgamation is when 2 or more entities combines and form new identity ............i dont know if its what u expected just shared wt i understood
@@sneha3079 I think you are wrong here. 1) when 2 or more companies combined and form a new company by loosing it's existence is called amalgamation which can be in the nature of merger or in the Nature of purchase. For it to be in the Nature of merger means : several conditions need to be fulfilled which are mentioned in As-14 Otherwise it will be amalgamation in the nature of purchase. 2) when One company takes over another company it's called absorption. In this the selling company loose it's existence too like amalgamation. And absorption is also in the nature of merger and in the nature of purchase just like amalgamation. The only difference between Amalgamation and absorption is: in amalgamation more than one entity forms a new company where else in absorption one company which can be existing or new takes other other company. From Accounting point of view there is no difference between Amalgamation and absorption, that's why in As-14 accounting is done only based on : in the nature of merger or in the nature of purchase. 3) In consolidation no entity looses it's existence rather they continue to exist. It's just purchasing of shareholding from open market by another company. So, the purchasing company don't purchase the whole company rather it invests in another company and its known as "acquisition". At the year end every entity will prepare their seperate Balance sheet plus parent holding company will prepare consolidated Financial statements of the whole group along with its stand alone statements. Statements includes: balance sheet, p/L and Cash Flow Statement. So every company will prepare these statements and the ultimate parent company will also prepare Consolidated statements which shows the entire business of that group together. I hope I clear many misunderstanding on this issue.
I am a 3rd year Bcom Accounting student from South Africa. This past week we had our first lecture of consoles for the year and unfortunately I do not have the textbook yet, due to financial problems, but I am so glad I came across your channel. It has helped me so much, Thank you ❤
Mr Ande Good dear you are following this channel, from this channel so many people have benefitted. Its great channel. I am Srinivas aged 59, i have enrolled myself to CMA. I am getting benifit from this channel.
I was applying for a job and wanted to refresh my knowledge on consolidations. I went through many videos, but the way you explain is so amazing and easy to understand, even for beginners. Thank you so much for your effort!
The way you explain is so simple and understanding . The notes , the steps ! I am impressed . Never write comments but I just couldn’t write ! Thank you for your time & nice work .
I am from Sri Lanka. This was really helped me to understand the concept of consolidation. You teach very clearly and interestingly. Thank you very much sir.
This is the first video I'm watching from you and I'm already loving it! Thank you so much, your explanation and your notes made it all easy to understand. I'm an ACCA student from Myanmar hoping to pass my exams next month, and I can already tell for sure that your videos will be very helpful indeed. Thank you, Sir! Wishing you a great day!
I am an ACCA foundation-level student and this video reallyyyyy helped me to understand the basics of CONSOLIDATED FINANCIAL STATEMENT!! Thank you sir!
M sooo Happy. Thanks to Saheb Academy. You taught this concept in such a simple manner that there stands no point of non understanding. Really appreciate. Thanks once again. Loved the way you carried us thru all the concepts. Thanks.
Hi I am very happy to say this ,these classes were amazing we can get full clarity on concept I am CA Inter student in may 2023 we got 30marks from this chapter. I got exemption i.e 63 marks I feel like I got exemption because of this class only. Thank you sooooo much i am waiting to keep this comment from the moment I wrote exam well. Thank you so much 🥰💓💗💛💖
No doubt this is the best channel for learning Accounts. Pls make a series on CMA Inter: Paper-5 Financial Accounting: Preparation of Financial Statements.
Thankyou so much sir..Amazing lectures.. You really deserve an award for the way how u explain every single working notes,assumptions,note points with some flashcards and all.. Very much grateful to you sir
very well explained sir. thank you. I am preparing for my CPA. And being a science student i had always struggled with accounting. its only after seeing your videos, i cud understand JE, TB P& L, i got my concept clear. Do u have 12th class accounting videos.???
Thanku so much for corporate chapters ♥️❤️❤️🥰🥰 very useful videos ..we can easily understand concepts even tough concepts ... the way u taught sir is An excellent 😍🥰🥰❤️✌️✌️
This video came like a blessing to me! Thank u so much sir! I am a third year bcom student and was so scared to even start this chapter. Heard so many terrible things about it but I hope after watching the entire series of this chapter, I will be confident enough. Thank you so much sir. God bless you🧿
Sir You are a god of so many 🙂 dont have any words to tell about you .. i was searching for ca inter classes all are doing in hindi but i cant understand after i found this channel now i am very happy really 😢
It's very need to me this chapter, sir you are one of the best faculty in india i have seen very very thanku so much ❤❤❤❤❤❤❤❤sir, you are teaching with notes awesome
00:01 Understanding the basics of consolidated financial statements is crucial for CA Inter Group 2 advance accounts. 01:53 Consolidated financial statements combine the financials of the parent company and its subsidiaries into one report. 05:43 Consolidation is about combining separate financial statements into a single set for the whole group 07:33 Consolidation combines financial statements of parent and subsidiary companies. 11:21 Control of 100% requires full consolidation 13:19 Consolidation involves combining all financial statements into one entity 16:48 Liquidating a company involves selling assets, paying off liabilities, and distributing remaining funds to equity shareholders. 18:21 Consolidated financial statements combine separate financial statements for shareholders. 21:39 Consolidation involves canceling out the investment in subsidiary and the net assets owned by the parent. 23:06 Consolidation is replacing investment in sub of parent by assets and liabilities of subsidiary company 26:11 Goodwill represents future benefits in acquiring a business. 27:40 The gain from the investment is transferred to capital reserve. 30:58 Acquiring a subsidiary on the opening day results in the entire year being considered as the post-acquisition period. 32:35 Acquiring 80% stake means acquiring 80% of net assets of the company. 35:54 Calculation of net assets on the date of acquisition 37:31 Post-acquisition profit impacts subsidiary's net assets 40:55 Profit needs to be split into pre-acquisition period and post-acquisition period 42:39 Calculation of pre-acquisition profit and time adjustment 46:08 Pre-acquisition net assets calculated using equity/share capital 47:48 Calculation of minority interest 51:00 Treatment of profit and loss for consolidation 52:38 Parent company acquires net assets and records goodwill or capital reserve based on cost of investment. 56:08 Post acquisition profit is revenue profit earned by the subsidiary. 57:44 Owners of the company are split into 80% parent and 20% minority interest. 1:00:54 Calculate pre-acquisition and post-acquisition net assets 1:02:37 Calculate post acquisition profits 1:05:51 Time adjustment is needed to apportion the movement in the entire year. 1:07:21 Consolidating total balances and dividing net assets 1:10:38 Minority interest is calculated as 20% of subsidiary's share capital and profits. 1:12:11 Consolidation of parent and subsidiary general reserves and profit and loss accounts 1:15:11 Time apportionment and analysis of profit of subsidiary 1:16:39 Understanding adjustments in consolidated financial statements
Very obsessed with your videos 😬. I just found your channel and subscribed. Thank you for all you do and for teaching all this in a very easy way to comprehend. Everything makes so much sense now; thank you!
Thank you so much for explaining very beautiful way I appreciate your Hard work and I watch every video and very helpful and easy to understand thank you so much 🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻
Id rather pay you tuition fee which I pay to university, whatta failure. Single person can do job of whole university, you are the best of the best, I like you, finally I am a little bit enjoying finance, maaan open up your own university, you will be top
Excellent explanation 👏👏👏after seeing this chapter I am thinking it is very difficult to CB understand but after seeing your video your explanation with diagrams was amazing👍👏....thank you for this video 🙏🙌
The way you are explaining all the concept is the excellent 👍 , it really very helpful for me to understanding my chapters , thank you so much to making video . It will be more helpful for me ,if you can make a video on preparation of financial accounting of a company .
![BOWKYLION - วิงวอน (ex-change) [Official MV]](http://i.ytimg.com/vi/cLdnZWDaO-w/mqdefault.jpg)
⏱TIMESTAMPS
00:00 - Intro
00:09 - Purpose & Meaning
06:26 - Amalgamation vs Consolidation
08:53 - Control Assessment
11:45 - Minority Interest
15:53 - Net Assets
17:54 - Intra Group Transactions
24:18 - Cost of Control
28:13 - Pre & Post Acquisition Profits
1:00:13 - 4 Working Notes
what happens in revaluation and mutual owings case could u explain that too??
@AYON SAHA when multiple companies join to form a new entity that is consolidation ... when a 2 entity combines and has identity exist only for one among them its merger ...... amalgamation is when 2 or more entities combines and form new identity ............i dont know if its what u expected just shared wt i understood
@AYON SAHA yes only consolidation.... no bother about amal and merger
@@sneha3079
I think you are wrong here.
1) when 2 or more companies combined and form a new company by loosing it's existence is called amalgamation which can be in the nature of merger or in the Nature of purchase.
For it to be in the Nature of merger means : several conditions need to be fulfilled which are mentioned in As-14
Otherwise it will be amalgamation in the nature of purchase.
2) when One company takes over another company it's called absorption. In this the selling company loose it's existence too like amalgamation. And absorption is also in the nature of merger and in the nature of purchase just like amalgamation.
The only difference between Amalgamation and absorption is:
in amalgamation more than one entity forms a new company where else in absorption one company which can be existing or new takes other other company.
From Accounting point of view there is no difference between Amalgamation and absorption, that's why in As-14 accounting is done only based on : in the nature of merger or in the nature of purchase.
3) In consolidation no entity looses it's existence rather they continue to exist. It's just purchasing of shareholding from open market by another company. So, the purchasing company don't purchase the whole company rather it invests in another company and its known as "acquisition".
At the year end every entity will prepare their seperate Balance sheet plus parent holding company will prepare consolidated Financial statements of the whole group along with its stand alone statements.
Statements includes: balance sheet, p/L and Cash Flow Statement.
So every company will prepare these statements and the ultimate parent company will also prepare Consolidated statements which shows the entire business of that group together.
I hope I clear many misunderstanding on this issue.
Thank you it’s very helpful. Could you please send to us this details by PDF.
I am a CMA student and I seriously cannot believe that this concept can be explained like this...Brilliant
I am a 3rd year Bcom Accounting student from South Africa.
This past week we had our first lecture of consoles for the year and unfortunately I do not have the textbook yet, due to financial problems, but I am so glad I came across your channel. It has helped me so much, Thank you ❤
Mr Ande Good dear you are following this channel, from this channel so many people have benefitted. Its great channel. I am Srinivas aged 59, i have enrolled myself to CMA. I am getting benifit from this channel.
Africa se kon b.com karta hai
@@ajbhai7713 😭🤣
@@ajbhai7713 why.. Can't they have? Is studying bcom only for indian students 😂lmao
Last year of graduation
I was applying for a job and wanted to refresh my knowledge on consolidations. I went through many videos, but the way you explain is so amazing and easy to understand, even for beginners. Thank you so much for your effort!
The way you explain is so simple and understanding . The notes , the steps ! I am impressed . Never write comments but I just couldn’t write ! Thank you for your time & nice work .
With the perfect fluency of English....i just loved your explanation.... impressed ❤❤
I have just started watching your videos for the past 1 week but seriously is very impressed by the way you explain everything. Thanks you for it.
Thanku so much sir
I am CMA student from kerala. Its very usefull and make me the concept into simpler format
I was so much afraid of this and my exam was due in dec 21 .... Now I guess my 15 marks ka going nowhere ... Thanks a lot sirji
Might be 20m too
Exactly ! I agree with u
CFS aayega 15 mks
Mera toh kl hai paper😭😭
How's your paper mate?
You are a real teacher. You have a great talent. I am learning for my FA ACCA paper and this helps
The way u kept the presenatation is soo simple and clear...all the very best for ur future endeavors
Your voice is smooth and notes are to the point.....Thank you for your contribution.
really like your technique of using paper written presentation rather than ppt... amazingly explained
Pls teach all accounting standards also 🙏ur videos and ur efforts are amazing 👌👌
I'm from Nepal. Aapka sikhaneka tarika best hai ...mai aapke video se hi sikhti hu...THANKYOU❤❤
I am from Sri Lanka. This was really helped me to understand the concept of consolidation. You teach very clearly and interestingly. Thank you very much sir.
This is the first video I'm watching from you and I'm already loving it! Thank you so much, your explanation and your notes made it all easy to understand. I'm an ACCA student from Myanmar hoping to pass my exams next month, and I can already tell for sure that your videos will be very helpful indeed. Thank you, Sir! Wishing you a great day!
I am writing my exams next month as well. Wishing you success :)
Thank you so much Sir for explaining complex topics in such a simply manner 🙂!
I am an ACCA foundation-level student and this video reallyyyyy helped me to understand the basics of CONSOLIDATED FINANCIAL STATEMENT!!
Thank you sir!
His explaination is always clear and detail. Like it
The best I’ve come across in my entire life … thank
Oh Sir You have broken a huge mountain into small small parts so easy to understand I'm a CMA final student Thanks a lot Sir, God Bless you...
M sooo Happy. Thanks to Saheb Academy. You taught this concept in such a simple manner that there stands no point of non understanding. Really appreciate. Thanks once again. Loved the way you carried us thru all the concepts. Thanks.
Hi
I am very happy to say this ,these classes were amazing we can get full clarity on concept I am CA Inter student in may 2023 we got 30marks from this chapter. I got exemption i.e 63 marks I feel like I got exemption because of this class only. Thank you sooooo much i am waiting to keep this comment from the moment I wrote exam well.
Thank you so much 🥰💓💗💛💖
I am glad to know that😊. May God bless you with success and happiness.✨
@@SahebAcademy thank you so much 🥰
Hlo
If I do lecs by this channel ...is it assured ki I don't have to search for other channels later ....are all concepts covered????...plzz replyyy
@@Vanyamaheshwari-l8nyou are preparing for may 2024?
Your preparation for this presentation is irreplaceable. Haffsoff to you.
Thanks😊
No doubt this is the best channel for learning Accounts. Pls make a series on CMA Inter: Paper-5 Financial Accounting: Preparation of Financial Statements.
WOW GREAT EXPLAINATION., AMAZING NOTES. GOD BLESS YOU!
Glad it was helpful!😊
@@SahebAcademy I want to have access to your member ship videos. Please let me know how can I have access to it?
Thankyou so much sir..Amazing lectures..
You really deserve an award for the way how u explain every single working notes,assumptions,note points with some flashcards and all..
Very much grateful to you sir
Really very Excellent way of Teaching & Explaining , Thanks a lot for making it simple
i had watched so many video regarding this topic, only this video i understand crystal clear.. thank you so much. love from Malaysia.
Just in time for my exam. I was looking forward to this chapter.
Sir the way ur teaching is incomparable 👏💓 nd tx for presenting hand written notes while explaining us 😍👏👏
this is legendary! Much love from Ghana.
Your lecture is very understandable..
Plz upload banking companies also it is a request 🙏🏻
👏👏👏Excellent explanation of concept using diagramtic structure. Sir thank u very much.
Ur teaching technique is just perfect
Very helpful
very well explained sir. thank you. I am preparing for my CPA. And being a science student i had always struggled with accounting. its only after seeing your videos, i cud understand JE, TB P& L, i got my concept clear. Do u have 12th class accounting videos.???
Thanku so much for corporate chapters ♥️❤️❤️🥰🥰 very useful videos ..we can easily understand concepts even tough concepts ... the way u taught sir is An excellent 😍🥰🥰❤️✌️✌️
You must be an Angel... Who saves students like us
This video came like a blessing to me! Thank u so much sir! I am a third year bcom student and was so scared to even start this chapter. Heard so many terrible things about it but I hope after watching the entire series of this chapter, I will be confident enough. Thank you so much sir. God bless you🧿
Sir You are a god of so many 🙂 dont have any words to tell about you .. i was searching for ca inter classes all are doing in hindi but i cant understand after i found this channel now i am very happy really 😢
It's very need to me this chapter, sir you are one of the best faculty in india i have seen very very thanku so much ❤❤❤❤❤❤❤❤sir, you are teaching with notes awesome
Absolutely awesome ...
The way of teaching is outstanding..
Thankyou sir🙏
Very concise & easy to understand lecture, salute and thank you for your effort from Jakarta, Indonesia
this is best
This is the first time i am watching your video really amazing class and perfect teaching thanku so much 😇
Thank you so much for taking the time to make this video and explain it in so much of detail. Love from South Africa
00:01 Understanding the basics of consolidated financial statements is crucial for CA Inter Group 2 advance accounts.
01:53 Consolidated financial statements combine the financials of the parent company and its subsidiaries into one report.
05:43 Consolidation is about combining separate financial statements into a single set for the whole group
07:33 Consolidation combines financial statements of parent and subsidiary companies.
11:21 Control of 100% requires full consolidation
13:19 Consolidation involves combining all financial statements into one entity
16:48 Liquidating a company involves selling assets, paying off liabilities, and distributing remaining funds to equity shareholders.
18:21 Consolidated financial statements combine separate financial statements for shareholders.
21:39 Consolidation involves canceling out the investment in subsidiary and the net assets owned by the parent.
23:06 Consolidation is replacing investment in sub of parent by assets and liabilities of subsidiary company
26:11 Goodwill represents future benefits in acquiring a business.
27:40 The gain from the investment is transferred to capital reserve.
30:58 Acquiring a subsidiary on the opening day results in the entire year being considered as the post-acquisition period.
32:35 Acquiring 80% stake means acquiring 80% of net assets of the company.
35:54 Calculation of net assets on the date of acquisition
37:31 Post-acquisition profit impacts subsidiary's net assets
40:55 Profit needs to be split into pre-acquisition period and post-acquisition period
42:39 Calculation of pre-acquisition profit and time adjustment
46:08 Pre-acquisition net assets calculated using equity/share capital
47:48 Calculation of minority interest
51:00 Treatment of profit and loss for consolidation
52:38 Parent company acquires net assets and records goodwill or capital reserve based on cost of investment.
56:08 Post acquisition profit is revenue profit earned by the subsidiary.
57:44 Owners of the company are split into 80% parent and 20% minority interest.
1:00:54 Calculate pre-acquisition and post-acquisition net assets
1:02:37 Calculate post acquisition profits
1:05:51 Time adjustment is needed to apportion the movement in the entire year.
1:07:21 Consolidating total balances and dividing net assets
1:10:38 Minority interest is calculated as 20% of subsidiary's share capital and profits.
1:12:11 Consolidation of parent and subsidiary general reserves and profit and loss accounts
1:15:11 Time apportionment and analysis of profit of subsidiary
1:16:39 Understanding adjustments in consolidated financial statements
The way you prepare the notes it was amazing and technique of teaching is awesome 👍
Thanks 😊
Thank you soo much.... Most awaited for this lecture. Very thankful to you sir..
I know how long you people have been asking for this chapter.😊
Very obsessed with your videos 😬. I just found your channel and subscribed. Thank you for all you do and for teaching all this in a very easy way to comprehend. Everything makes so much sense now; thank you!
You r a genius bro thank you so much for the hardwork u put in. Love how u simplify every single part. Love your channel
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Next level clarity, thank you is
very small words ❣️🙏
You are a blessing to Accounting students. 💕
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I Never skip the class, it's that interesting. Thank u so much 😍
Better than the paid coaching classes...❤
Wonderful explanation sir ...Please do more videos on IFRS subject 🙏
Soo soothing voice and good concept clarity with beautiful notes ❤😊
I am glad that your teaching CA intern subject
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Wow 1st time of coming across your videos. I have an exam soon and this has really helped my understanding...Thankyou
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Thank you very much bro we have only Hindi video for us it's very helpful thank you very much
Thank you so much for explaining very beautiful way I appreciate your Hard work and I watch every video and very helpful and easy to understand thank you so much 🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻🙏🏻
The best to have seen ever. I understood it.
It helps me in my ACCA FA PAPER SIR
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Thank You 🤝 The way u are explaining is perfect!!! 💯👌
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Waiting for this chapter ❤️
This video was very very useful........thank you so much now I'm confident that I can do well in my may 2022 accounts exam
MEEEN I FELL LOVE WITH YOUR CLASSES, YOU MUST BE PROFESSOR
Best REVISION VIDEO
Thankyou all my concepts are cleared.
Glad to hear that😊
miya bhai.......thank you so much....video was amazing and cleared all my doubts and got a clear cut concept of consolidated financial statements.....
Very simple and easy to understand. Great bro! Appreciated!
You explained it really well and easily... thanks a lot buddy. 🤗
Id rather pay you tuition fee which I pay to university, whatta failure. Single person can do job of whole university, you are the best of the best, I like you, finally I am a little bit enjoying finance, maaan open up your own university, you will be top
Thank You Sir For a detailed well explained teaches😊👍🏻.Now I understood the concept thoroughly 👍🏻
Anyone who cannot explain like you, should not be a teacher
The way you explained, it’s like you knew what I didn’t understand 😂😂😂♥️♥️🙏🏽🙏🏽
Excellent explanation 👏👏👏after seeing this chapter I am thinking it is very difficult to CB understand but after seeing your video your explanation with diagrams was amazing👍👏....thank you for this video 🙏🙌
Your explanation is wonderful.i can understand your explanation very easily.thank you. Thank you so much.💖💖💖💖💖💖💖💖keep going brother.🤟🤟🤟🤟🤟🤟👏👏👏👏
The way you are explaining all the concept is the excellent 👍 , it really very helpful for me to understanding my chapters , thank you so much to making video .
It will be more helpful for me ,if you can make a video on preparation of financial accounting of a company .
Superb explanation, a clear understanding of the concept
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Amazing explanation 👍👍
Excellent work it was so easy after going through this video... Keep up the good work.
Thank you so much for your wonderful teaching 🙏
Thank you so much sir. And Kindly make a video lectures related to Bank accounts. Kindly do this needful
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The way you are teaching was awesome thanku
Thankyou guru ji 🙏♥️ Charan sparsh 🙏🙇
Your teaching way super sir.