Consolidation general rules

Question 1

What is the process we need to follow when doing a consolidation at this point of our knowledge?

Answer 1

Step 1: Perhaps do the translation of SOPLOCIRE
Step 2: perhaps do a translation of a trial balance at the end of year
Step 3: Worksheet (if necessary) (note that your translation might be part of your worksheet
Step 4: Journal Entries
Step 5: Do the statement of profit or loss
Step 6: Do the statement of changes in equity
step 7: Do the statement of financial position

Question 2

Why do Journal entries exist?

Answer 2

to elimate things and create things for the consolidated statements

Question 3

What must you not forget?

Answer 3

random things like loans and stuff that need to be eliminated