F-3 Combined Financial Statements

Question 1

When are combined financial statements prepared?

F3-31

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.

F3-32

Answer 2

• Intercompany transactions and balances among these companies are eliminated.
• Non-controlling interest treated like consolidated financial statements.
• Capital stock and retained earnings are added across, not eliminated.
• Income statement are added across.