Principles preparation of consolidate financial statements on the example of Monolith Group LTD

The unification of enterprises is very common and frequent nowadays in modern reality. The major reason for this is the benefits and profits of joint ventures among the companies in the group. The enterprise group prepares both individual and consolidated financial statements to represent the assets of the group, liabilities and equity as a whole. In order for a financial report to be well perceptible and very much suitable, it has to be prepared and presented of course in accordance with international standards of accounting system.
The following work paper discusses the essential point of individual and consolidated financial reports, the important principles and procedures of its preparation. The main purpose of this paper is to highlight the importance of the individual and consolidated financial reporting and all those important issues and points that should be considered and taken into account when we draw up consolidated financial statements. The given study mainly focuses on the topics such as the existence of control, the determination of the assets, liabilities and responsibilities, Goodwill capital assets, non-controlling shares the same for minority interest and also the determination of the unshared earnings and profits of the group. Issues related to the elimination of intragroup operations are also hereby described in the following work.
The second chapter of the paper is fully devoted to the implementation of the subjects discussed above according to the example of a specific organization. You will find all the necessary and considerably important keys in order to make and prepare a consolidated financial statement based upon the practical example. In conclusion, the paper discusses how the company consolidates a financial report in accordance with international standards of accounting as well as the international financial reporting standards for sure.