Combined Financial Statements/ Push Down Accounting

Question 1

What are the types of companies that can have combined financial statements?

Answer 1

1) Companies under common control (individual owns many companies)
2) Companies under common management
3) Unconsolidated subsidiaries (foreign subs) are combined

Question 2

What are the requirements for combined financial statements?

Answer 2

1) Intercompany transactions and balances are ELIMINATED
2) Noncontrolling interests are treated like consolidated fianancial statements
3) Capital stock and retained earnings are added across, NOT ELIMINATED
4) Income statements are added across