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Finance & Accounting
Pages 6 (1506 words)
Name Professor Date Research and analysis Consolidation policy Mannai Company is a registered company as a shareholding company in Qatari. The registered office is in Doha and the company is listed on the Qatar exchange. The consolidated statements of the company usually comprise the financial activities of the company together with its subsidiaries.
The subsidiaries of the company are usually consolidated from the acquisition date to the date that the company stops controlling the subsidiary (Gulf times.com). The accounts for the subsidiaries are prepared at the same time as that of the mother company. The accounting policies used are consistent. The group usually eliminates all its balances, losses, gains, and transactions that arise from intra group transactions. The dividends are also fully eliminated. The losses that are found in a subsidiary are usually attributable to the non controlling interest of the company even if the results may lead to a deficit balance. If there occur a change in ownership of the subsidiary without any losses, the transaction is recorded as an equity transaction. When Mannai corp. losses a subsidiary, it derecognizes its liabilities and assets that were attributable to the subsidiary. It also derecognizes the non controlling interest that was associated with the subsidiary. The translational differences that were recorded in equity are also derecognized. At the same time, it recognizes fair value of the consideration that it receives, fair value that is attributable to investments received and recognizes profits or losses that are associated with the subsidiary loss. The company then reclassifies its share of components in other income generating avenues. ...
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