Analysis of the main indicators of individual and consolidated reporting. Moscow State University of Printing Arts. Features of the analysis of the balance of consolidated financial statements

Principles of formation of summary (consolidated) reporting

When compiling the consolidated (consolidated) financial statements of the Group of related organizations great importance is of the quality of the input information available for the consolidation procedures. For the preparation of reliable consolidated reporting that meets the requirements of all interested users and in accordance with international standards, the initial information on the financial position and economic activity organizations that are part of the Group, must be built on certain principles and methods (meet certain requirements).

Completeness principle: All assets, liabilities, deferred expenses, deferred income of the consolidated group are accepted in full, regardless of the share of the parent company. Minority interest is shown in the balance sheet as a separate item under the appropriate heading.

Equity principle: Since the parent company and subsidiaries are treated as a single economic unit, equity is determined by the book value of the shares of the consolidated enterprises, as well as the financial results of these enterprises and reserves.

Fair and Fair Valuation Principle: Consolidated financial statements must be presented in a clear and easy-to-understand manner and give a true and fair picture of the assets, liabilities, financial position, profits and losses of the entities in the group and considered as a whole.

Principle of Consistency in the Use of Consolidation and Valuation Methods and Going Concern Principle: Consolidation methods should be applied for an extended period of time, provided that the enterprise is a going concern, i.e. does not intend to cease operations in the foreseeable future. Deviations are permissible in exceptional cases, and they must be disclosed in the annexes to the reporting with the appropriate justification. This principle applies to both forms and methods of preparing consolidated financial statements.

Materiality principle: This principle provides for the disclosure of such items, the value of which may affect the adoption or change of a decision on the financial and economic activities of the company.

Uniform valuation methods: Assets, liabilities, prepaid expenses, profits and expenses of the consolidated company must be taken into account in their entirety. It does not matter how they are presented in the current accounting and reporting of the enterprises belonging to the group, since the parent company does not impose a prohibition and does not implement selective accounting approaches. It is important that during consolidation the assets and liabilities of the parent company and subsidiaries are valued according to the same methodology used by the parent company. Valuation methods under the legislation that the parent company complies with should be used in the preparation of consolidated financial statements.

Single Compilation Date: Consolidated financial statements must be prepared on the balance sheet date of the parent company. The financial statements of subsidiaries should also be restated at the date of the consolidated financial statements.

Most of the principles discussed above, on which consolidated financial statements are based, in accordance with international standards, are also reflected in Russian regulatory documents governing the preparation of consolidated financial statements.

The following rules underlie the procedure for collecting and processing indicators of intra-group reporting of Group entities provided for the preparation of consolidated financial statements:

A) consistent formation of information within the framework of uniform forms of specialized intra-group reporting;
B) gradual generalization of indicators from the level of separate structural units to the group as a whole;
C) control of the reliability and consistency of reporting information at each stage of the formation or combination of indicators.

In summary financial statements all assets and liabilities, incomes and expenses of the parent organization and subsidiaries are combined by line-by-line summing up the relevant data according to the rules established by the Guidelines for the preparation and presentation of consolidated financial statements.

When compiling consolidated financial statements, the parent organization and subsidiaries should use a single accounting policy in relation to the assessment of similar items of property and liabilities, income and expenses, etc.

If the accounting policy of any subsidiary is different from that used for the preparation of consolidated financial statements, then before combining such financial statements with the financial statements of the parent organization, it is brought into line with accounting policy used to prepare consolidated financial statements.

The consolidated financial statements combine the financial statements of the parent organization and subsidiaries, compiled for the same reporting period and on the same reporting date.

The organization must draw up consolidated financial statements in the amount and manner established by the Regulations on accounting"Accounting statements of the organization" (PBU 4/96), according to the forms developed by the parent organization on the basis of standard forms of financial statements. Wherein:

A) standard forms of financial statements can be supplemented with data necessary for users of consolidated financial statements;
B) articles (lines) of standard forms of financial statements for which the group does not have indicators may not be given, except when the corresponding indicators took place in the period preceding the reporting period;
C) numerical indicators of individual assets, liabilities and business transactions should be presented separately in the consolidated financial statements if, without knowledge of them, it is impossible for users to assess the financial position of the group or financial result her activities. Numerical indicators for certain types of assets, liabilities and business transactions are not given in the consolidated balance sheet or consolidated statement of financial results, if each of these indicators individually is not significant for users to assess the financial position of the group or the financial result of its activities, but are reflected in the total amount in the notes. to the consolidated balance sheet and consolidated income statement.

The parent organization adheres to the accepted form of the consolidated balance sheet, consolidated statement of financial results and explanations to them from one reporting period to another. Changes in selected forms of the consolidated balance sheet, consolidated statement of financial results and explanations thereto are disclosed in the explanatory notes to the consolidated balance sheet and consolidated statement of financial results, indicating the reasons for this change.

The reliability of the compilation and compliance with the procedure for presenting consolidated financial statements is ensured by the head of the parent organization.

The volume and procedure, including the deadlines for the submission of financial statements of subsidiaries and affiliates of the parent organization (including additional information necessary for the preparation of consolidated financial statements), are established by the parent organization.

Prior to the preparation of consolidated financial statements, it is necessary to verify and settle all mutual settlements and other financial relationships between the parent organization and subsidiaries, as well as between subsidiaries.

If the parent organization has subsidiaries and affiliates at the same time, the consolidated financial statements are compiled by combining the financial statements of the parent organization and subsidiaries and including data on participation in affiliated companies.

The indicators of the financial statements of a subsidiary are included in the consolidated financial statements from the first day of the month following the month in which the parent organization acquires the corresponding number of shares, shares in authorized capital subsidiary or the emergence of another opportunity to determine the decisions taken by the subsidiary.

Data on a dependent company are included in the consolidated financial statements from the first day of the month following the month in which the parent organization acquired the corresponding number of shares or a stake in the authorized capital of the dependent company.

The name of each component of the consolidated financial statements must contain the word "consolidated" and the name of the group.

Consolidated financial statements are submitted to the founders (participants) of the parent organization. Consolidated financial statements are submitted to other interested users in cases established by law Russian Federation, or by decision of the parent organization.

It is advisable for the parent organization to draw up consolidated financial statements no later than June 30 of the year following the reporting year, unless otherwise provided by the legislation of the Russian Federation or the constituent documents of this organization.

Consolidated financial statements are signed by the head and chief accountant (accountant) of the parent organization.

By decision of the group members, consolidated financial statements may be published as part of the published financial statements of the parent organization.

The procedure for maintaining consolidated (consolidated) accounting, reporting and balance sheet of a financial and industrial group, approved by Decree of the Government of the Russian Federation dated January 9, 1997 No. 24, provides for maintaining consolidated (consolidated) accounting and compiling a balance sheet and other established forms by the central company FIG, established by all parties to the agreement on the establishment of the FIG or, in relation to these participants, is the main company authorized to conduct the affairs of the FIG.

The consolidated (consolidated) statistical reporting of FIGs is compiled and submitted to the State Committee of the Russian Federation on Statistics by the central company in the prescribed manner.

Summary (consolidated) reports, accounting and statistical reporting reflect the property and financial position of the FIG, as well as the results of its investment activities.

Consolidated reporting is formed by combining the indicators of accounting reports of related enterprises included in the same group, and characterizes the property and financial position of the group as a whole at the reporting date, as well as the financial results of the group for the reporting period.

Consolidated reporting is a specific, non-traditional type of financial statements, as it: contains information about the property and financial position of a group of enterprises, i.e. several legal entities, and not one legal entity, which goes beyond the scope of property isolation; is compiled on the basis of the data of the individual reporting of the enterprises of the group, and not their accounting records. Consolidated accounting for the group is not maintained.

When preparing consolidated financial statements, the following principles must be observed: - a single date of compilation; -single monetary measurement (the single currency is usually the reporting currency of the parent company); –unity of methods for estimating balance sheet items (unification of valuation); – the duration of the use of consolidation methods; – completeness of information (the need to include in the consolidated financial statements all assets, liabilities, income and expenses of the parent company and subsidiaries in full, regardless of the share of the parent company. The minority share should be shown in a separate line in the consolidated financial statements); – materiality of information (consolidated statements should contain only information that is essential for users. Data on a subsidiary (dependent) enterprise, if they do not have a significant impact on the formation of an idea of the financial position and financial results of the group’s activities for the reporting period, may not be included in the consolidated report. Under Russian law, if the value of the authorized capital of a subsidiary does not exceed 3% of the value of the group's capital, and in the amount of the capital of other subsidiaries included in the consolidated financial statements of the group - 10% of the value of the capital of the group, the indicators of such a subsidiary may not be included in the consolidated financial statements groups); rationality (inclusion in the consolidated financial statements of a group of data on a subsidiary is possible when it does not contradict the requirement of rational accounting. If such a contradiction arises, then the valuation of the participation of the parent company in the subsidiary should be reflected as financial investments).

The consolidated balance sheet does not include: mutual financial investments in the authorized capital of the group's enterprises; accounts receivable and accounts payable between group companies; profits and losses from intra-group transactions included in the book value of property (fixed assets, inventories, etc.); dividends paid by group companies to each other. The consolidated Profit and Loss Statement of the group does not include: proceeds from the sale of products (goods, works, services) between the enterprises of the group and the costs attributable to this sale; any other income and expenses arising from transactions between group companies.

Thus, the essence of consolidation consists in carrying out operations of mutual exclusion of individual reporting indicators of group enterprises when combining them into consolidated reporting. In international practice, mutual exclusion operations are called item elimination.

At present, the procedure for the formation of consolidated reporting is regulated by two regulatory documents: the Procedure for maintaining consolidated (consolidated) accounting, reporting and balance sheet of the financial and industrial group, approved by the Decree of the Government of the Russian Federation of 24; Guidelines for the preparation and presentation of consolidated financial statements, approved by order of the Ministry of Finance of Russia dated December 30, 1996 112.

A group is a parent organization with its subsidiaries and affiliates. Subsidiary company - an organization in respect of which the parent organization fulfills one of the following conditions: it has more than 50% of voting shares (stakes in the authorized capital); has the ability to determine the decisions taken by this organization, in accordance with the agreements concluded between them; has other ways of determining the decisions made by the subsidiary. A dependent company is an organization in which a significant share of the capital (from 25 to 50%) is owned by the parent organization.

The Guidelines highlight cases where consolidated reporting is not prepared: lack of control. For example, shares (share in the authorized capital) of a subsidiary or dependent company are acquired for a short-term period with a view to subsequent resale, or the parent organization cannot determine the decisions made by the subsidiary; non-compliance with the requirements of materiality and rationality. Data on a subsidiary or dependent company may not be included in the consolidated financial statements if they do not have a significant impact on the formation of an idea of the financial position and financial performance of the group, or the inclusion of such data is contrary to the requirement of rationality; control of the parent company of another organization. A subsidiary company may, in turn, be a parent organization in relation to its subsidiaries. Such a company may not compile consolidated financial statements if 100% of its voting shares (authorized capital) belong to another parent organization that does not require the preparation of consolidated financial statements; various activities. If, for example, the group includes industrial enterprises and banks, then investments in the authorized capital of a subsidiary that is a bank are reflected in the consolidated financial statements as investments in a dependent company; consolidated reporting is not prepared if the parent company has only dependent companies.

To compile the consolidated financial statements of a group of related enterprises, the Methodological Recommendations propose to apply the following rules: the financial statements of the parent organization and subsidiaries are combined by summing up the relevant data; items reflecting the financial investments of the parent organization in the authorized capital of subsidiaries and, accordingly, from the authorized capital of subsidiaries - in the part belonging to the parent organization are excluded from the consolidated Balance Sheet; in the event that the amount of financial investments of the parent company does not coincide with the value of the shares (shares) reflected in the balance sheet of the subsidiary, a positive or negative difference arises, which should be reflected in the consolidated balance sheet as a separate item "Business reputation"; indicators of receivables and payables between the parent organization and subsidiaries, as well as between subsidiaries are excluded from the consolidated reporting; dividends paid by subsidiaries of the parent organization or other subsidiaries are excluded from the consolidated financial statements. Consolidated reporting reflects only dividends payable to organizations and persons not included in the group; consolidated reporting excludes proceeds from sales of products (goods, works, services) between the parent organization and subsidiaries, as well as the subsidiaries themselves and the costs corresponding to this sale; when combining the financial statements of the parent organization and a subsidiary in which the parent organization has more than 50%, but less than 100% of voting shares (shares), indicators reflecting the minority share in the authorized capital and net profit (loss) of the group.

Distinctive features of consolidated reporting In domestic practice, consolidated reporting in the traditional sense is reporting that is compiled by government bodies (ministries, departments, etc.) for state-owned enterprises under their control. The purpose of consolidated reporting is to provide an opportunity for government bodies to evaluate the activities of their subordinate organizations.

Consolidated reporting in the conditions of the administrative-command economy included: current statistical reporting (it reflected the average and relative performance indicators of subordinate enterprises); periodic financial statements; annual financial statements.

Currently, this type of reporting has changed. The Regulations on Accounting and Accounting Reporting in the Russian Federation and the Procedure for Compiling and Submitting Consolidated Reporting by Federal Ministries and Other Federal Executive Bodies of the Russian Federation established that federal ministries and other federal executive bodies compile consolidated financial statements: on the execution of cost estimates of organizations on a budget; unitary enterprises; joint-stock companies (partnerships), part of the shares (interests, shares) of which are fixed in federal ownership.

Consolidated reporting compiled by federal ministries and other federal executive authorities has the following characteristic features: the owner of all organizations included in the consolidated report, with the exception of joint-stock companies, is the state represented by the relevant executive authority; as a rule, all organizations included in the Report belong to the same industry; the federal executive body that draws up a consolidated report does not include indicators of its own activities in it; the only user of such reporting is the state represented by sectoral ministries and departments, as well as statistical and state financial bodies; consolidated reporting is inherently an element of the current system of state financial control and planning.

Consolidated reporting has a number of distinctive features: consolidated reporting is not the reporting of a legally independent enterprise; it characterizes the property and financial position of the group as a single economic entity. In this regard, the main feature of the methodology for compiling such reporting, along with summation, is the elimination (mutual exclusion) of indicators of intra-group settlements, revenue and profit; consolidated financial statements are prepared for a group of enterprises, consisting of parent and subsidiaries. At the same time, subsidiaries are under direct or indirect control of the parent company; in the consolidated financial statements, the share of assets and capital of the group that does not belong to the parent company is allocated, i.e. minority share; The consolidated financial statements provide a summary of the results of operations and financial position of each company in the group, whereby the profits of one subsidiary may offset the losses of another, and the sound financial condition of one subsidiary may hide the potential or actual insolvency of another.

In the process of its study, the following groups of indicators are calculated and analyzed in dynamics: the property status of a group of enterprises; assessment of the structure of sources of funds (capital) of the group; group liquidity; financial stability; asset turnover; profitability of sales and capital of the group of enterprises.

A feature of the analysis of consolidated reporting is the addition of another analytical stage, during which you need to find out: what type of reporting consolidation is used; under what conditions the merger of enterprises into a group took place; what is the nature of the economic relationship and interaction of group members.

A business combination can be carried out by purchasing the net assets or shares of another company or by merging. In the latter case, two enterprises merge, in which: the assets and liabilities of one enterprise are transferred to another enterprise, and the first is liquidated; the assets and liabilities of two enterprises are merged into a new enterprise, and the two former ones are liquidated

Associations are of three types: -horizontal (one enterprise is combined with another, and both of them belong to the same industry (sphere) of business; -vertical (enterprises located at different poles of the production process and interacting according to the "supplier-manufacturer-buyer" scheme) are combined) ; - conglomerative (a diversified association is created from enterprises of diversified affiliation).

The date of purchase is the date from which the acquirer has the right to govern the financial and operating policies of the acquiree in order to benefit from its activities. Usually this is the date general meeting shareholders, approving the transaction and making decisions on making the necessary changes to the founding documents.

Another feature of the analysis of consolidated financial statements is the assessment of minority interest, which is understood as the part of the net assets of the group, which the shareholders of the parent company do not own directly or indirectly through other shareholders. This part belongs to the so-called minority shareholders.

Question 1. Methods of analysis of the summary (consolidated) reporting.

The concepts of "consolidated reporting" and "consolidated reporting" are not identical. These reporting forms differ not only in purpose, compilation technique, range of users, but also conceptually. Consolidated reporting is prepared within the framework of one owner or for statistical generalization of data, and consolidated reporting is prepared by several owners of jointly controlled property.

Order No. 112 of the Ministry of Finance of Russia dated December 30, 1996 “On methodological recommendations for the preparation and presentation of consolidated financial statements” provides a detailed description of the general provisions of consolidated (consolidated) statements, the procedure for its preparation and presentation, and the rules for combining financial statements indicators of the parent organization and subsidiaries, the rules for including data on dependent companies in the consolidated financial statements, as well as the rules for compiling explanations for the consolidated balance sheet and the consolidated income statement.

Order No. 112 characterizes consolidated reporting as "a system of indicators reflecting the financial position as of the reporting date and financial results for the reporting period of a group of related organizations."

When compiling consolidated financial statements, the goal is set: to eliminate (exclude) the influence of the above factors (distorting reporting data) on the performance of the group as a whole.

The general idea of consolidation is very simple in its essence. There is a group of enterprises that are interconnected in economic and financial terms, but are independent legal entities. It is necessary to draw up consolidated statements that allow you to get an idea of the financial condition and results of the group as a whole. At the same time, each legally independent enterprise that is part of a corporate group is obliged to maintain its own accounting records and draw up its results in the form of its own financial reporting.

Consolidated financial statements are a combination, using special accounting procedures (rather than simple summation), of the statements of two or more enterprises that are in certain legal and financial and economic relationships, when one or more legally independent enterprises are under the control of only one company - the so-called parent (parent) society, standing above all other members of the group.

Issues of the procedure for the preparation, structure and purpose of consolidated financial statements are reflected in several International Financial Reporting Standards. The most important standards for the problems of consolidated reporting are: 22 "Combination of companies" (IAS "Business Combinations"); 25 “Accounting for Investments” (IAS 25 “Associating for Investments”); 27 “Consolidated Financial Statements and Accounting for Investments in Subsidiaries” (IAS 27 “Consolidated Financial Statements and Associating for Investments in Subsidiaries”); 28 “Accounting for Investments in Associates” (IAS 28 “Associating for Investments in Associates”), 31 “Financial Reporting on Participation in Joint Activities”.

One of the most complex standards is IFRS 22 Business Combinations. The purpose of this standard is to describe the methodological problems of accounting in business combinations. It deals with examples of the acquisition of one enterprise by another, as well as situations where it is impossible to determine the buyer enterprise. The same standard addresses the issues of determining the cost of acquisition, its distribution between the acquired identifiable assets and liabilities of the enterprise, the problems of accounting for the emerging positive or negative business reputation, and its further depreciation.

International financial reporting standards provide all the main definitions.

Consolidation is a generalization of the commercial and financial results of a group of enterprises considered as a single economic unit.

A group (corporation) is an association of enterprises (companies) that is not a legal entity and consists of a holding (parent) company and all its subsidiaries, which in turn are legal entities.

The parent company (holding company, main society) is the holder of a controlling stake in subsidiaries or other enterprises, controls the activities of one or more subsidiaries. It is obliged to draw up consolidated (consolidated) financial statements.

A controlling stake (more than 50% of ordinary shares at par value with the right to vote) ensures the resolution of issues of income distribution, the appointment of all or most members of the board or board of directors of the controlled enterprise.

A subsidiary company (company) is recognized as such if another company, called the parent company, as a result of the predominant participation in its authorized capital, or in accordance with an agreement between them, or otherwise exercises existing control over its activities, has the ability to determine decisions made by such a company.

Consolidated financial statements are prepared by the parent company for the entire set of controlled companies (enterprises) and reflect the financial position and results of economic activity of all companies included in the scope of consolidation as a single economic entity.

The group (scope) of consolidation is the parent company with all its subsidiaries.

Consolidated balance sheet - a consolidated balance sheet of all companies included in this area of consolidation. An integral part of the consolidated financial statements.

The consolidated income statement includes the results of the financial and economic activities of all companies included in this area of consolidation. This is an obligatory element of the consolidated financial statements.

The results of a subsidiary are included in the consolidated income statement from the date the company is acquired and recognized as a subsidiary.

Consolidated financial statements are the financial statements of a group presented as a single business entity.

Control of financial and economic activities - the right of a company to establish the principles of financial and production (commercial) activities of another company in order to benefit from it.

Unconditional control implies the possession by the holding company of more than 50% of the ordinary shares of a subsidiary, indirect - with a smaller share of participation with the possibility of additional influence.

Joint control - control of the activities of an enterprise (company) subject to consolidation, carried out jointly by two or more other companies.

Consolidation of companies - the connection of independent enterprises into a single economic unit as a result of a merger or as a result of the acquisition of control by one enterprise over the net assets and production activities of another enterprise.

Purchase (acquisition) is such a combination of enterprises in which one of the enterprises, called the buyer, obtains control over the net assets and production activities of another enterprise, bought in exchange for the transfer of assets, the assumption of liabilities or the issue of shares.

A merger, or amalgamation, of capital shares is such a combination of enterprises in which the shareholders of the combined enterprises exercise control over all or almost all of the common net assets and production activities in order to share the risk and profits of the combined enterprises, so that neither party can be identified as acquiring.

Control-powers to manage the financial and production activities of the enterprise for the purpose of making a profit. Minority share (minority shareholder) owning less than 50% of the shares - part of the net results of activities and net assets of a subsidiary attributable to the share that the parent does not own directly or indirectly through subsidiaries.

Fair value is the amount at which an asset could be exchanged or a liability settled by willing, knowledgeable parties in a forthcoming transaction.

Date of purchase (acquisition) - the date of establishment of control over the net assets and production activities of the acquired enterprise.

AT Russian legislation it also reflects issues related to the definition of certain concepts and terms of the consolidated financial statements. In accordance with Art. 105 of the Civil Code of the Russian Federation, a business company is recognized as a subsidiary if another (main) business company or partnership, by virtue of its predominant participation in its charter captain, or in accordance with an agreement concluded between them, or otherwise has the ability to determine decisions taken such a society. A subsidiary company is not liable for the debts of the main company (partnership). The parent company (partnership), which has the right to issue mandatory instructions to the subsidiary, is jointly and severally liable with the subsidiary for transactions concluded by the latter in pursuance of such instructions. In the event of the insolvency of a subsidiary due to the fault of the main company (partnership), the latter bears subsidiary liability for its debts.

In Art. 106 of the Civil Code of the Russian Federation, a dependent business company is defined, which is recognized as such if another (prevailing, participating) company has more than 20% of the voting shares of a joint-stock company or 20% of the authorized capital of a limited liability company.

A group of persons is a set of legal or legal entities and individuals, in relation to which one or more conditions are met: a person or several persons jointly, as a result of an agreement (concerted actions), have the right to directly or indirectly dispose of (including on the basis of contracts of sale, trust management, agreements on joint activities, orders or other transactions) more than 50% of the total number of votes attributable to shares (deposits, shares) that make up the authorized (reserve) capital of the legal entity. Under the indirect disposal of the votes of a legal entity is understood the possibility of their actual disposal through third parties, in relation to which the first person has the specified right or authority;

An agreement has been concluded between two or more persons, who are granted the right to determine the conditions for conducting entrepreneurial activity one or more parties to the agreement or other persons, or to perform the functions of their executive body;

The person has the right to appoint more than 50% of the composition of the executive body and (or) the board of directors (supervisory board) of the legal entity;

The same individuals represent more than 50% of the composition of the executive body and (or) the board of directors (supervisory board) of two or more legal entities.

Direct control is interpreted as the ability of a legal entity or individual to determine the decisions made by a legal entity through one or more actions:

Orders, including jointly with other persons as a result of an agreement (concerted actions), more than 50% of the total number of votes attributable to shares (deposits, shares) constituting the authorized (share) capital of a legal entity;

Obtaining the right to determine, including jointly with other persons, the conditions for conducting business activities of a legal entity or to exercise the functions of its executive body;

Obtaining the right to appoint more than 50% of the executive body and (or) the board of directors (supervisory board) of a legal entity;

Participation together with the same individuals in the executive body and (or) the board of directors (supervisory board) of two or more legal entities with the representation of more than 50% of the composition of their management body

The definition of control, established in modern Russian legislation, is key in determining whether it is necessary to draw up consolidated financial statements.

At the same time, there is no concept of a parent company in Russian legislation, the equivalent of which in the Civil Code of the Russian Federation is in some cases the main company (partnership), and in others - the dominant company or the central company in financial and industrial groups.

Method of inclusion in the consolidated financial statements of the data group of subsidiaries and affiliates

Type of subordinate company and type of investment	The degree of influence of the parent (main) company	Method of inclusion in the consolidated financial statements
one . Subsidiary company (if the parent organization has more than 50% of the voting shares of JSC or more than 50% of the authorized capital of 000)	Decisive influence, total control	Full Consolidation
2. Joint company	Joint control and influence	Proportional consolidation method (quota consolidation)
3. Dependent company (if the parent organization has from 20 to 50% of the voting shares of the JSC or from 20 to 50% of the authorized capital of the LLC)	Significant impact	Equity Consolidation Method
Financial investments in the capital of the parent company (one-time or permanent)	Long-term relationships without significant influence or presence of influence in connection with the acquisition of a share in a company for the purpose of sale	General procedure provided for financial investments

Other issues of preparing consolidated financial statements are supplemented and specified in the Federal Law of November 30, 1995 No. 190-FZ “On Financial and Industrial Groups”.

Indirect control is considered as the ability of a legal or natural person to determine decisions made by a legal entity through third parties, in relation to which the first has one or more rights or powers:

Dispose, including jointly with other limes as a result of an agreement (concerted actions), more than 50% of the total number of votes attributable to shares (deposits, shares) that make up the authorized (share) capital of a legal entity;

Determine, including jointly with other persons, the conditions for conducting business activities of a legal entity or perform the functions of its executive body;

Appoint more than 50% of the executive body and (or) the board of directors (supervisory board) of a legal entity;

Participate together with the same individuals in the executive body and (or) the board of directors (supervisory board) of two or more legal entities, representing more than 50% of the composition of their management body.

Consolidated financial statements are addressed to the management and supervisory boards of enterprises that are part of the corporate family, founders, as well as external consumers of information, such as existing and potential investors, creditors, suppliers, buyers, the state. For external users, it acts as additional information. For the parent company, consolidated reporting is a kind of "extension" and "supplement" to its reporting.

When compiling consolidated financial statements, the reporting data of the parent company and subsidiaries are combined in stages to present them as a single economic organization. For these purposes, first, the reporting items of the group companies are summarized item by item, and then mutual investments and operations are excluded.

When compiling consolidated financial statements, the parent organization and subsidiaries must use a single accounting policy in relation to the assessment of similar items of property and liabilities, income and expenses, etc.

The consolidated financial statements combine the financial statements of the parent organization and subsidiaries, compiled for the same reporting period and on the same reporting date.

The organization must compile consolidated financial statements in the amount and manner established by the Regulation on Accounting "Accounting Statements of the Organization" (PBU 4/99), according to the forms developed by the parent organization on the basis of standard forms of financial statements.

The parent organization adheres to the accepted form of the consolidated balance sheet, consolidated profit and loss statement and explanations to them from one reporting period to another. Changes in the selected forms of the consolidated balance sheet, consolidated profit and loss statement and explanations to them are disclosed in the explanations to these reporting forms, indicating the reasons that caused this change.

The volume and procedure, including the deadlines for the submission of financial statements of subsidiaries and affiliates of the parent organization (including additional information required for the preparation of consolidated financial statements), are established by the parent organization.

The name of each component of the consolidated financial statements must contain the word "consolidated" and the name of the group.

The consolidated financial statements are signed by the head and chief accountant (accountant) of the parent organization.

By decision of the group members, consolidated financial statements may be published as part of the published financial statements of the parent organization.

The following reports are not included in the consolidated financial statements:

1) companies, control over which can be considered temporary. For example, a controlling interest in a subsidiary is acquired and owned by the parent company solely for the purpose of its subsequent sale in the near "future;

2) subsidiaries operating under conditions of long-term insurmountable restrictions that deprive them of the opportunity (or significantly reduce it) to transfer funds to the account of the parent company. For example, due to currency restrictions on foreign branches, "blocking" of bank accounts, etc.;

3) subsidiaries whose economic activity differs sharply from the nature of the activities of the main parent company, for example, a bank and an industrial joint-stock company, a trading and insurance company.

Thus, the consolidation procedure covers such calculations as:

Consolidation of capital;

Consolidation of balance sheet items related to intra-group settlements and transactions;

Consolidation of financial results (profit or loss) from intra-group sales of products (works, services), as well as mutual volumes of sales of products (works, services) between the parent and subsidiaries and related costs;

Consolidation of other mutual (operating and non-sales) income and expenses within the group;

Amounts of dividends of the parent and subsidiaries.

In accordance with international standards, consolidated reporting should be based on certain principles and.

1. The principle of completeness. All assets, liabilities, deferred expenses, deferred income of the consolidated group are accepted in full, regardless of the share of the parent company. The minority share is shown in the balance sheet as a separate item under the appropriate heading.

2. The principle of equity. Since the parent company and subsidiaries are considered as a single economic unit, equity is determined by the book value of the shares of the consolidated enterprises, as well as by the financial results of these enterprises and reserves.

3. The principle of a fair and reliable assessment. Consolidated reporting should be presented in a clear and easy-to-understand form and give a true and reliable picture of the assets, liabilities, financial position, profits and losses of enterprises included in the group and considered as a whole.

4. The principle of constancy in the use of consolidation and valuation methods and the principle of a going concern. Consolidation methods should be applied for a long time, provided that the enterprise is functioning, i.e. does not intend to cease operations in the foreseeable future. Deviations are permissible in exceptional cases, moreover, they must be disclosed in the appendices to the reporting with appropriate justification. These principles extend to both forms and methods of drawing up consolidated financial statements.

5. The principle of materiality. This principle provides for the disclosure of such articles, the value of which may affect the adoption or change of a decision on the financial and economic activities of the company.

6. Uniform assessment methods. Assets, liabilities, expenses of future periods, profits and expenses of the consolidated company must be taken into account in their entirety. During consolidation, the assets and liabilities of the parent company and subsidiaries were valued using the same methodology used by the parent company.

7. Single date of compilation. Consolidated financial statements must be prepared on the balance sheet date of the parent company. The financial statements of subsidiaries should also be restated at the date of the consolidated financial statements.

Consolidation stages:

Primary consolidation is carried out when compiling for the first time the consolidated financial statements of previously independent enterprises and is associated with the acquisition of an invested enterprise;

Subsequent consolidation is carried out when compiling the consolidated financial statements of a group formed earlier and already carrying out mutual operations.

Technique and methods for compiling consolidated reporting in different countries different.

There are two methods for preparing primary consolidated financial statements:

Method of purchase (acquisition);

Merger (acquisition) method.

These methods differ procedurally and have a large impact on the total financial results presented in the consolidated financial statements.

Independent enterprises can be combined into a single economic unit. Mergers can lead to the creation of a new enterprise.

The merger may be carried out by purchasing the net assets or shares of another enterprise.

The merger can also be carried out by merging:

assets and liabilities of one enterprise are transferred to another enterprise and the first one is liquidated;

The assets and liabilities of the two enterprises are merged into a new enterprise and the two old ones are liquidated.

Associations are of horizontal, vertical and conglomerate types.

Horizontal association - when one enterprise is combined with another and both of them belong to a single industry of production.

Vertical association - when enterprises are merged, located at different poles of the production process and interacting according to the scheme: "supplier-manufacturer-buyer".

A conglomerate association is when a diversified association is created from enterprises with a diversified affiliation.

Merger transactions in which one of the combining entities acquires control over the other are considered purchases.

The date of purchase is the date from which the buyer has the right to manage the financial and current policies of the acquired enterprise in order to benefit from its activities. In practice, this date is the date of the general meeting of shareholders.

Control is considered established when one of the merging enterprises acquires the right to more than half of the votes of the other merging enterprise.

Additional signs of control:

The right to manage the financial and production policy of another enterprise in accordance with the charter or agreement;

The right to appoint or replace a majority of the members of the board or equivalent governing body of another enterprise;

If it is difficult to identify the acquiring enterprise, additional indirect signs purchases:

The ratio of the fair value of the merging entities (the larger entity is the acquirer);

The ability to resolve the issue of recruiting management personnel for another enterprise (in such cases, the dominant enterprise is the buyer).

Sometimes an enterprise acquires shares in another enterprise, but as compensation issues enough of its own shares, giving the right to more votes, so that control of the combined entities passes to the owners of the entity whose shares were originally acquired. This situation is called reverse acquisition. Legally, the entity issuing the shares may be treated as either the parent or successor entity to whose shareholders control of the combined entities is transferred. In this case, it becomes the acquiring enterprise and receives the right to vote or other rights. The entity issuing the shares is considered to have been acquired by another entity; the latter is treated as the buyer and the purchase method is applied to the assets and liabilities of the entity issuing the shares.

When the shareholders of the merging enterprises do not create a dominant partner, but unite on essentially equal terms in order to share control over all or almost all assets and production activities, then we are talking about a merger.

The essence of the merger is that the acquisition does not occur and the joint division of risks and profits continues, which, as it were, existed before the unification of economic activities. In a merger, the business activities of the combined entities continue separately. When combining individual financial statements, only minimal changes occur.

In order to classify a transaction as a merger and not as an acquisition, 12 conditions must be met.

1. Any of the merging parties must not be a subsidiary or division of another merging company for two years.

2. Each of the merging parties must be independent of the other merging enterprises.

3. The merger is carried out in the form of a single transaction in accordance with a special plan within one year after the adoption of such a plan.

4. At the completion date of the merger plan, one of the merging companies will issue only ordinary shares with rights identical to those of outstanding shares in exchange for substantially all of the ordinary shares with voting rights of the other entity. Their share must be at least 90% of the common voting shares to be exchanged.

5. None of the merging parties, within two years prior to the adoption of the merger plan or in the interval between its acceptance and completion, intends to make changes to the equity capital structure in order to influence the terms of the exchange, for example, by additional issue of shares, their distribution between existing shareholders, exchange or withdrawal from circulation.

6. The merging enterprises, after the adoption of the plan and before its completion, purchase ordinary shares in the usual amount for purposes other than the merger.

7. As a result of the exchange of shares, the shares of the owners of ordinary shares remain the same.

10. The combined company does not expressly or implicitly agree to buy back or withdraw from circulation all or part of the ordinary shares for the purpose of influencing the association.

11. The merged company does not enter into financial transactions for the benefit of former shareholders, for example, does not use the shares issued for the merger as collateral for loans.

12. The combined company does not plan to dispose of a significant portion of its assets within two years of the merger, except in transactions that are customary for the merged entities or to eliminate duplication or excess capacity.

Since the merger results in the creation of a single structure, the combined entity adopts a single unified accounting policy.

For any business combinations, additional information should be provided in the financial statements:

Names and descriptions of the merging entities;

Accounting methods;

The effective date of the combination for accounting purposes;

Information about the production activity that was decided to be liquidated.

When buying, you must provide the following information:

The cost of the acquisition and the amount of consideration for the purchase consideration paid or contingently payable;

Information about the nature and amount of the adjustment allowance and other closure costs arising from the acquisition and recognized at the acquisition date.

The financial statements should disclose:

Accounting methods for positive and negative business reputation, including for the depreciation period;

Justification of the useful life of positive and negative goodwill or amortization period for negative goodwill;

Depreciation methods;

The results of reconciliation of the residual value of positive and negative goodwill.

When merging, it is necessary to provide additional data in the reporting regarding:

Descriptions and number of shares issued, along with the percentage of voting shares of each undertaking exchanged for the purpose of pooling capital shares;

Amounts of assets and liabilities contributed by each enterprise;

Details of sales income, other operating income, extraordinary items, and the net profit or loss of each entity up to the date of the combination, which are included in the net profit or loss reported in the combined entity's financial statements.

Consolidated reporting includes, in addition to the balance sheet, a consolidated income statement. When compiling such a report, the financial results of the activities of the consolidating companies, their presentation will depend on the method of association - purchase or merger.

Upon purchase, financial results are included in the consolidated income statement only from the date of acquisition, and upon merger - for the entire financial year.

It should be noted that the merger is more preferable for enterprises seeking to maximize sales, profits, assets and minimize costs as a result of such a combination.

The next stage of consolidation is the consolidation of the reporting of enterprises that have worked for some time as part of a group.

When consolidating the statements of companies included in the group, in subsequent periods of their activities, additional difficulties arise due to the need to eliminate articles.

Items subject to elimination are items that are excluded from the consolidated financial statements because they lead to re-counting and misstatement of the group's financial performance.

Intrafirm-mennye operations are similar to operations between divisions (departments) in the company. Such operations are performed during trade transactions and settlements on them, the issuance of loans, and the receipt of dividends. All such transactions must be eliminated in the preparation of the consolidated balance sheet and income statement, as well as intra-company settlement balances.

When preparing consolidated financial statements, the following calculations are subject to elimination:

Debt on contributions not yet made to the authorized capital;

Advances received or given;

Loans of companies belonging to the group;

Mutual receivables and payables of group companies (since a single economic unit cannot have receivables or payables to itself);

Other assets and securities;

Deferred expenses and income;

Unforeseen operations.

If the amounts of receivables of one company fully correspond to the amounts of accounts payable of another company included in the group, then they are mutually eliminated.

When drawing up subsequent consolidated income statements, adjustments are made in four main areas:

1) exclusion of interim results caused by intra-group sales;

2) depreciation of business reputation that arose during the creation of the group;

3) amortization of the deviation of the fair value of assets and liabilities from their book value, included in these items in the initial consolidation;

4) allocation of a minority share in the results of the activities of a subsidiary.

When investing less than 100% in the capital of the acquired enterprise, a so-called minority share arises. This is the share of third-party shareholders, which in the consolidated financial statements should be reflected separately from the capital of the group.

In this case, the minority share in the consolidated balance sheet is determined by calculation based on the value of the capital of the subsidiary as of the reporting date and the percentage of shares not owned by the parent organization in their total number. The value of a subsidiary's capital is determined as the result of Section III "Capital and Reserves" of its balance sheet minus the items "Social Sphere Fund" and "Target Financing and Incomes".

In the consolidated balance sheet, the indicator of the minority share is reflected in the result of section III of the balance sheet. In the consolidated income statement, the minority share reflects the amount of the financial result of the subsidiary's activities that does not belong to the parent organization; this share is calculated based on the amount of retained earnings or uncovered loss of the subsidiary for the reporting period and the percentage of voting shares not owned by the parent organization in their total number.

In the consolidated income statement, the indicator of the minority share is shown as a separate item on the entered line; income and expenses are also allocated as a separate item. Incomes and expenses of the group in the consolidated report are given minus the corresponding incomes and expenses of the minority.

If the indicator of the minority share in the losses of the subsidiary is greater than the indicator of the minority share in the capital of this company, then the amount of the reserve capital (if it is insufficient - additional, then statutory) of the subsidiary, included in the consolidated financial statements, is reduced by the amount of the difference.

An explanatory note is attached to the consolidated balance sheet and income statement of the group's activities, which contains a list of all subsidiaries with disclosure of a number of data (names of companies, places of state registration or business activities, the amount of authorized capital, the share of participation of the main (prevailing) in these companies or in their authorized capital).

The note also provides a cost estimate at the reporting date of the impact of the acquisition or disposal of subsidiaries or affiliates on the financial position of the group and on the financial performance of the group for the reporting period.

In the explanatory note to the consolidated financial statements, the parent organization also provides a breakdown of its investments in the context of each dependent company (in the section on financial investments):

Data on the name of the dependent company,

its legal address,

The amount of authorized capital,

Parent organization's share in total amount contribution, as well as a statement of intentions for further participation.

The explanatory note to the consolidated financial statements also contains explanations of those cases when the indicators of subsidiaries and dependent companies are reflected in the consolidated financial statements directly as financial investments, to which the considered principles and rules of consolidation do not apply.

Table for compiling a consolidated balance sheet

Balance sheet items	Parent company	LLC "Beta" (subsidiary)	Own capital of a subsidiary, owned by	elimination	Consolidated balance
				group (70%)	minority (30%)

one . Fixed assets:
1.1. Business reputation
12. fixed assets
13. Investments in subsidiaries
14. Other non-current assets
2. Current assets

3. Capital and reserves:
3.1. Authorized capital
3.2. Extra capital
33 Reserve capital
34. Retained earnings of previous years
3.5. Retained earnings of the reporting period
4 Minority share
5 Other liabilities

An example of drawing up one of the options for a consolidated balance sheet is the scheme presented in the table. It considers the case when the analyzed organization acquired 70% of the ordinary shares of the enterprise Beta LLC; the parent company's investments in the subsidiary amounted to 4,725 thousand rubles.

1. The book value of the equity of a subsidiary of Beta LLC is determined as of the date of acquisition of shares by the parent organization under analysis:

authorized capital + additional capital + reserve capital + retained earnings of previous years = 2915 + 940 + + 1720 + 1025 = 6600 thousand rubles.

2. The book value of the share of the equity capital of the subsidiary "Beta" is calculated:

0.70 x 6600 thousand rubles = 4620 thousand rubles.

3. The amount of investments of the parent organization under analysis in the subsidiary and the book value of the acquired share of the subsidiary's own capital are compared; calculated monetary value goodwill arising from consolidation:

4725 thousand rubles - 4620 thousand rubles. = 105 thousand rubles. This value is reflected in the asset of the consolidated balance sheet.

4. From the consolidated balance sheet of the group, indicators under the item “Investments in subsidiaries” in the amount of 4,725 thousand rubles are completely excluded.

At the same time, 4620 thousand rubles. are eliminated with the book value of the equity share of the subsidiary purchased by the parent organization. Therefore, this part of the equity of the subsidiary "Beta" is not reflected in the consolidated balance sheet.

The remaining 105 thousand rubles. investments in a subsidiary are reflected in the article "Business reputation of the enterprise" of the consolidated balance sheet.

5. The minority share is determined, which includes two components:

30% of the book value of the subsidiary's equity, i.e. 0.30 x 6600 thousand rubles = 1980 thousand rubles;

30% of the profit received by the subsidiary after the sale of its shares to the parent organization being analyzed, i.е. "After-sales" profit (reporting period) = 0.30 x 1130 = 339 thousand rubles.

Thus, the minority share is 1980 thousand rubles + 339 thousand rubles. = 2319 thousand rubles. This amount is reflected in the consolidated balance sheet as a separate liability line.

6. The undistributed profit of the reporting year of the parent organization is determined: 0.70 x 1,130 thousand rubles. = 791 thousand rubles. In the consolidated balance sheet, the net profit of the reporting period is added to the net profit of the parent organization itself: 791 thousand rubles. + 15575 thousand rubles. = 16366 thousand rubles.

7. All other items in the balance sheets of both the parent organization being analyzed and Beta LLC are summed up.

As can be seen from Table 9.2, the consolidated balance sheet in its structure is practically no different from the original balance sheets of the "parent organization and subsidiary. This means that the sequence and methodology for analyzing the consolidated balance sheet is the same as the analysis of a conventional balance sheet. A feature of the analysis of the consolidated reporting is that an analytical stage is added, during which it is necessary to explain what type of reporting consolidation was used, on what conditions the enterprises were merged into a group, to characterize the economic interconnection and interaction of group members. necessary (financial analysis of not only consolidated statements, but also initial forms financial statements of the parent organization and subsidiaries.

Summarizing all of the above, it can be argued that the consolidated financial statements have some features:

Consolidated reporting is not the reporting of a legally independent enterprise. Its purpose is to obtain a general idea of the results of the corporate family. It has a clear informational and analytical focus;

The results of transactions between members of the corporate family are not included in the consolidated financial statements. It shows only assets and liabilities, income and expenses from transactions with external counterparties. Any intra-group financial and business transactions are identified and eliminated during the consolidation process. Consolidation is not a simple summation of articles of the same name in the financial statements of the group's companies;

The group's reports contain summary information on the results of activities and the financial position of each company included in the association. This means that the profits of one subsidiary may "hide" the losses of another, and the sound financial position of one subsidiary may "hide" the potential insolvency of another;

If the group consists of companies operating in different types of business, then the consolidated financial statements for this group may not disclose individual important details when there is no additional information about each segment of the group's activities.

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Features of the preparation and analysis of the organization's consolidated financial statements

Introduction

consolidated reporting consolidated

One of the promising areas of business development at present is the creation of groups of enterprises that are economically interconnected, but at the same time remain independent legal entities - concerns or holding firms in which one company, called the parent or parent company, controls one or more others.

Thanks to the creation of concerns and holdings, the enterprises included in them get the opportunity to access new technologies, expand the scope of their activities, develop business ties, attract new qualified employees, and acquire loans. The positive point is also that the formation of groups of enterprises can significantly strengthen the investment potential of such an economic association, increase profitability and the technological level of production. The creation of groups of enterprises opens up wide opportunities for conducting a number of group operations to save financial resources, reduce tax losses, and coordinate financial and material flows within the group.

The balance sheets of individual enterprises cannot provide adequate information for analyzing the functioning of a group of enterprises - they can only be used in the analysis of a single enterprise. To identify the results of the analysis of the state and activities of such associations as concerns and holdings, special financial statements are required - the so-called consolidated financial statements. It should be noted that the consolidated financial statements must be distinguished from the consolidated statements, which were previously compiled by the Allied ministries. The ministerial consolidated reporting was compiled by simply summing up the reporting articles of the same name of subordinate enterprises, as a result of which the report of the trust, the main department, and the consolidated report of the ministry were formed.

With this method of generalization, most of the indicators of consolidated reporting - indicators of output, the number of employees, the wage fund, production costs, profits and losses, the state of fixed and working capital, and many others - were obtained by adding the indicators of enterprise reports. As a result, when summing items of the same name without taking into account internal operations, a double count appeared, the valuation of economic assets and the amount of reported profit were overestimated.

Unlike consolidated ministerial reporting, consolidated financial statements, or, as we call it, using the term adopted abroad, consolidated statements, imply something else. The starting point here is that with the formation of a concern, a new independent economic unit arises, in which subsidiaries, affiliates and joint (jointly controlled) enterprises occupy the position of economically non-independent units. That is why a simple addition of balance sheet items and a statement of financial results is not enough to get a real picture of the functioning of a group of enterprises. This requires consolidated accounts prepared using special methods that eliminate common items and double counting.

In Russia, this type of reporting is still little known and the rules for its preparation have not yet been fully regulated, despite the fact that the requirement for the preparation of consolidated financial statements has been included in the “Regulations on Accounting and Reporting” since 1992. Recently, certain attempts have been made to regulate accounting in this area. Later, the procedure for compiling and submitting consolidated financial statements was established by the “Methodological recommendations for compiling and submitting consolidated financial statements”, approved by order of the Ministry of Finance of the Russian Federation of December 30, 1996 No. 112 (as amended on May 12, 1999). But, firstly, these rules and recommendations are described in general view and, secondly, they contain serious shortcomings and some differences with international accounting standards.

Therefore, the problem of formation of summary (consolidated) reporting in Russia is so relevant today.

The purpose of this course work was to consider the existing procedure for compiling consolidated financial statements.

To achieve this goal, the following tasks are set that determine the internal structure of the work:

The first section provides a description of the consolidated financial statements, a list of enterprises that should compile them, and general provisions for the formation of such financial statements.

The second section discusses the procedure for the formation of consolidated (consolidated) reporting, more precisely, the procedure for compiling summary (consolidated) reporting and the problems of its formation.

The third section provides a comparative analysis of the discrepancies between the Russian accounting system and IFRS.

The information basis of the study is official sources, materials published in the periodical press, legislative and regulatory documents regulating this problem, textbooks.

1. Economic essence and meaningnot consolidated financial statements

1.1 The concept of consolidated reporting, general provisions for the preparation of consolidated (consolidated) reporting

The consolidated financial statements of the Group combine the financial statements of the parent company and its subsidiaries, and also include data on affiliated companies. The parent organization in relation to subsidiaries acts as the main company (partnership), and in relation to dependent companies - as the predominant (participating) company. At the same time, both the subsidiary and the dependent company are legal entities.

The status of a subsidiary or dependent company is determined in accordance with Articles 105, 106 of the Civil Code of the Russian Federation:

According to paragraph 1 of Art. 105 of the Civil Code of the Russian Federation, a business company is recognized as a subsidiary if another (main) business company or partnership, by virtue of its predominant participation in its authorized capital, or in accordance with an agreement concluded between them, or otherwise has the ability to determine decisions made by such a company.

A business company is recognized as dependent (according to paragraph 1 of article 106 of the Civil Code of the Russian Federation) if another (predominant, participating) company has more than 20% of the authorized capital of a limited liability company.

The procedure for submitting consolidated (consolidated) statements is established by the Guidelines for the preparation and presentation of consolidated financial statements, approved by Order No. 112 of the Ministry of Finance of the Russian Federation dated December 30, 1996 (as amended on May 12, 1999). These recommendations were developed in accordance with clause 91 of the Regulations on Accounting and Reporting, approved by the RF Ministry of Finance dated July 29, 1998 No. 34n, which states: “if an organization has subsidiaries and affiliates, in addition to its own accounting report, consolidated financial statements are also prepared, including indicators of reports of such companies located on the territory of the Russian Federation and abroad, in the manner established by the Ministry of Finance of the Russian Federation.

So, we can conclude that the financial statements of a subsidiary are combined into consolidated financial statements in the following cases:

A) If the parent organization owns more than 50% of the voting shares of a joint-stock company or more than 50% of the authorized capital of a limited liability company;

B) If the parent organization has the ability to determine the decisions made by the subsidiary in accordance with the agreement concluded between the parent organization and the subsidiary;

C) If the parent organization has other ways of determining the decisions made by the subsidiary.

In turn, data on a dependent company are included in the consolidated financial statements if the parent organization has more than 20% of the voting shares of a joint-stock company or more than 20% of the authorized capital of a limited liability company.

Consolidated (consolidated) reporting is not prepared if:

A) temporary control is assumed because the subsidiary is acquired with a view to selling in the near future;

B) the subsidiary operates under strict restrictions, which significantly reduces the possibility of transferring funds to the parent company;

C) the parent organization cannot determine the decisions made by the subsidiary;

D) the subsidiary is not significant to the group;

E) several enterprises taken together do not occupy a significant place in the group;

E) the activity of the subsidiary differs from the activity of the enterprises belonging to the group (otherwise the concept of a fair and reliable assessment is violated);

H) high cost and significant delay in the provision of information and documents required for consolidation.

In these cases, the valuation of the participation of the parent organization in the subsidiary (dependent) company may be reflected in the consolidated financial statements in the manner established for the reflection of financial investments. Each such case is subject to disclosure in the explanatory notes to the consolidated financial statements, indicating:

A) the full name of the subsidiary (dependent) company;

B) places of state registration and / or places of business activity;

C) the size of the authorized capital and the share of participation in it of the parent organization;

D) the share of voting shares owned by the parent organization, if it differs from the share of participation;

E) the main financial performance indicators of the subsidiary.

A subsidiary acting as a parent organization in relation to its subsidiaries may not compile consolidated financial statements (except when it is registered and / or conducts business activities outside the Russian Federation) if:

The parent organization may also not compile consolidated financial statements if it has only dependent companies. Each such case is subject to disclosure in the notes to the financial statements of the parent organization.

In Russian legislation, the concept of consolidated reporting and the concept of consolidated reporting are used as synonyms, despite the fact that consolidated reporting is compiled within one legal entity based on the reporting data of its divisions and branches, allocated to a separate balance sheet, but not being independent legal entities and in the presence of subsidiaries. and dependent companies. In addition, the preparation of consolidated annual financial statements is carried out by line-by-line summing up the relevant data reflected in the forms of annual financial statements of organizations and unitary enterprises.

Consolidated financial statements, unlike the consolidated one, have a different purpose - to show, first of all, to investors and other interested parties, the results of the financial and economic activities of a group of interconnected enterprises that are legally independent, but in fact are a single economic organism. The main need for the preparation of consolidated reports is the elimination of individual indicators of enterprises included in the group in order to exclude repeated counting in the final (consolidated) report of the group.

Thus, consolidated reporting is prepared within the framework of one owner or for statistical generalization, and consolidated reporting is compiled by several owners of jointly controlled property.

1.2 Principles for the formation of consolidated (consolidated) reporting

When compiling the consolidated (consolidated) financial statements of the Group of related entities, the quality of the initial information available for the consolidation procedures is of great importance. In order to draw up reliable consolidated reporting that meets the requirements of all interested users and in accordance with international standards, the initial information on the financial position and economic activity of the organizations that are part of the Group must be built on certain principles and methods (meet certain requirements).

The following rules underlie the procedure for collecting and processing indicators of intra-group reporting of Group entities provided for the preparation of consolidated financial statements:

A) consistent formation of information within the framework of uniform forms of specialized intra-group reporting;

B) gradual generalization of indicators from the level of separate structural units to the group as a whole;

C) control of the reliability and consistency of reporting information at each stage of the formation or combination of indicators.

The consolidated financial statements combine all assets and liabilities, income and expenses of the parent organization and subsidiaries by line-by-line summing up the relevant data according to the rules established by the Guidelines for the preparation and presentation of consolidated financial statements.

If the accounting policy of any subsidiary is different from that used for the preparation of consolidated financial statements, then before combining such financial statements with the financial statements of the parent organization, it is brought into line with the accounting policy used for the preparation of consolidated financial statements.

The consolidated financial statements combine the financial statements of the parent organization and subsidiaries, compiled for the same reporting period and on the same reporting date.

The organization must compile consolidated financial statements in the amount and manner established by the Regulation on Accounting "Accounting Statements of the Organization" (PBU 4/96), according to the forms developed by the parent organization on the basis of standard forms of financial statements. Wherein:

A) standard forms of financial statements can be supplemented with data necessary for users of consolidated financial statements;

B) articles (lines) of standard forms of financial statements for which the group does not have indicators may not be given, except when the corresponding indicators took place in the period preceding the reporting period;

C) numerical indicators of individual assets, liabilities and business transactions should be presented in the consolidated financial statements separately, if without knowledge of them it is impossible for users to assess the financial position of the group or the financial result of its activities. Numerical indicators for certain types of assets, liabilities and business transactions are not given in the consolidated balance sheet or consolidated statement of financial results, if each of these indicators individually is not significant for users to assess the financial position of the group or the financial result of its activities, but are reflected in the total amount in the notes. to the consolidated balance sheet and consolidated income statement.

The reliability of the compilation and compliance with the procedure for presenting consolidated financial statements is ensured by the head of the parent organization.

The indicators of the financial statements of a subsidiary are included in the consolidated financial statements from the first day of the month following the month when the parent organization acquires the corresponding number of shares, a share in the authorized capital of the subsidiary, or the appearance of another opportunity to determine the decisions taken by the subsidiary.

The name of each component of the consolidated financial statements must contain the word "consolidated" and the name of the group.

Consolidated financial statements are submitted to the founders (participants) of the parent organization. Consolidated financial statements are presented to other interested users in cases established by the legislation of the Russian Federation, or by decision of the parent organization.

Consolidated financial statements are signed by the head and chief accountant (accountant) of the parent organization.

By decision of the group members, consolidated financial statements may be published as part of the published financial statements of the parent organization.

The consolidated (consolidated) statistical reporting of FIGs is compiled and submitted to the State Committee of the Russian Federation on Statistics by the central company in the prescribed manner.

Summary (consolidated) reports, accounting and statistical reporting reflect the property and financial position of the FIG, as well as the results of its investment activities.

2 . The procedure for the formation of summary (consolidated) reporting

2.1 The procedure for compiling summary (consolidated) statements

The procedure for compiling consolidated financial statements by groups of related organizations (holdings, corporations, concerns, associations, etc.) has a number of features. Before starting the preparation of consolidated financial statements, the parent company must obtain the following data from all group entities:

A) on financial investments of the group organizations in the authorized capital of other organizations;

B) on the nominal value of shares (shares of capital) of the organizations of the group;

C) about the share premium received by the organizations of the group;

D) on the balances of accounts payable and receivable of the organizations of the group to each other;

E) about credits and loans issued by the organizations of the group to each other;

E) about the accrued and paid dividends to the organizations of the group;

G) on intra-group income and profit;

3) fixed assets acquired from the group's entities;

I) about materials, goods, finished products acquired from the organizations of the group and not yet written off.

Consolidation should ensure that the mutual transactions of the group companies are not repeated.

When compiling consolidated financial statements, the financial statements of the parent company and subsidiaries are combined in stages in order to present them as a single economic organization. For these purposes, first, the reporting items of the group companies are summarized line by line, and then mutual investments and operations are excluded. In general, this can be represented as follows:

A) the costs of the investor's investments are eliminated by the own capital of the invested enterprises;

B) balances of outstanding debt on intercompany transactions, such as intracompany sales, expenses, loans, dividends, are eliminated completely;

C) unrealized profit on intercompany operations in the balance of goods and in fixed assets is eliminated in full;

D) unrealized losses on intercompany transactions in the balance of assets are also eliminated;

E) net income attributable to outside shareholders of a subsidiary is reported separately from profit attributable to the parent company;

E) in the consolidated financial statements, the minority interest in net assets should also be distinguished.

When compiling a consolidated balance sheet special meaning has a procedure for consolidating debt obligations. From a legal point of view, the group cannot have debt obligations or debts in relation to itself. Therefore, loans and other debt obligations, contributions to the reserve fund and debt between enterprises in the group should be excluded. This applies primarily to the following balance sheet items:

A) debts on contributions to the authorized capital;

B) settlements on commercial transactions;

C) loans issued to the enterprises of the group;

D) long-term financial investments;

D) bills;

E) other debts;

G) short-term financial investments.

The investment of the parent company in subsidiaries and the share held by the parent company in the capital of subsidiaries are eliminated.

The equity items of the subsidiary to be consolidated are as follows:

A) authorized capital;

B) reserve capital;

C) retained earnings (uncovered loss)

It is possible to single out the stages of balance sheet consolidation depending on the presence or absence of mutual operations:

A) primary consolidation (when preparing for the first time the consolidated financial statements of a group of previously independent enterprises) is associated with the acquisition of an investee enterprise;

B) subsequent consolidation (when compiling the consolidated financial statements of a group formed earlier and already carrying out mutual operations).

The technique and methods of preparing consolidated financial statements vary from country to country.

Depending on the nature of the transaction, when investing and establishing control, there are two methods for compiling primary consolidated financial statements: the purchase (acquisition) method and the merger (acquisition) method. These methods differ procedurally and have a large impact on the aggregate financial results presented in the consolidated financial statements.

2.2 Problems of formation of the consolidated reporting

Discrepancies between the Russian accounting system and the international one lead to significant differences between the financial statements prepared in Russia and in Western countries. Because of these differences, many Russian enterprises developing business international relationships currently need their financial statements to be prepared in accordance with International Financial Reporting Standards. And, first of all, it is necessary to pay attention to the most significant differences that Russian users of financial (accounting) statements will have to face.

The currency of financial statements prepared in accordance with IFRS is the Russian ruble. For a long time, reporting under international standards has been associated with reporting prepared in a foreign currency (usually in dollars). This is one of the most common misconceptions about international standards. In fact, the vast majority of Russian companies must prepare statements in the national currency - Russian rubles. Under IFRS, reporting in dollars or another currency is possible only in a limited number of cases. For example, this is the reporting of companies that sell products and purchase basic resources in a currency other than the Russian ruble.

Foreign currency reporting is just one way to more accurately reflect the financial condition and performance of companies in the hyperinflationary environment that was inherent in Russian economy in 1992-2002 The rules of Russian accounting did not allow to fully take into account inflationary processes, which led to a significant distortion of financial information and the impossibility of its objective analysis by reporting users. The profit of Russian companies in the mid-1990s, as a result of recalculating data and preparing reports in the face of inflation, often turned into losses, since the proceeds from the sale of products were not enough to purchase raw materials and the next operating cycle. The opposite situation is also known: defaulting companies received "inflationary profits" from the depreciation of their debts. As a result, they found themselves in a more favorable situation than those who tried to pay off all their obligations on time.

In accordance with IFRS, financial statements must be prepared in monetary units of the same purchasing power. This means that the cost of all non-monetary items (fixed assets, stocks, capital items) is recalculated taking into account price increases. In practice, this means an increase in the historical cost, for example, of each fixed asset by the consumer price index determined by the State Statistics Committee. The cost of construction in progress, authorized and additional capital, stocks is recalculated in a similar way. In addition, for the purposes of comparability of information, the data of income statement items are recalculated. As a result of all these procedures, the report calculates the indicator "profit (loss) on net cash position", which reflects the profit (loss) of the organization, due to the company's policy in terms of inflation.

No current account adjustments are required at this time. At the same time, companies reporting under international standards for the first time must recalculate "opening balances" - data on non-monetary assets, liabilities and equity items that existed on January 1, 2003. As a rule, this is 90 - 95% of all non-monetary items. This is the most time-consuming part of the transformation of the company's first reporting. For large industrial enterprises, this process can take from one to two months of work by a qualified specialist.

Asset valuation is an important, but by no means the only, difference between Russian financial statements and financial statements prepared in accordance with IFRS. Although Russian standards declare compliance with the same reporting principles as international ones, in practice they are often not observed. For example, the issue of recognition of assets and liabilities in Russian accounting rules is not even considered. Therefore, assets in the Russian balance sheet may include objects that will never bring economic benefits.

The problem of recognition of assets and liabilities has another perspective. In Russian accounting, transactions are reflected only after they find their documentary reflection in the form of invoices, decisions of judicial authorities, etc. When preparing reports in accordance with IFRS, it is necessary to recognize in the reporting period those expenses that occur in the company, but do not have documentary evidence. As a result, in international reporting expenses and, accordingly, liabilities are recognized earlier than in the Russian one.

The main differences, as a rule, are related to the period of recognition of other income and expenses (in the Russian classification of operating and non-operating): for example, the accrual of fines and penalties under contracts with counterparties, as well as the procedure for calculating reserves, such as reserves for guarantees.

Another feature of Russian accounting, in addition to strict documentation requirements, is strict adherence to the principles of accounting for assets and liabilities at historical cost, that is, at acquisition cost. International standards are more focused on the market valuation of assets and liabilities and require clarification of the valuation of the elements of financial statements in the event that the "initial cost" is higher than the "fair" (market).

There are additional requirements for certain items in the financial statements, such as inventories. The latter are valued at the lower of two values - cost and possible selling price.

When preparing reports in accordance with IFRS, the role of professional judgment of an accountant increases. Unlike Russian accounting, where everything is regulated and the accountant acts simply as an accountant, when preparing international reporting, the assessments of financial and economic services are very important. In practice, most Russian companies still use depreciation rates. They do not always correspond to the actual life of assets and, therefore, do not always correctly reflect the costs of companies in terms of depreciation. The same applies to the assessment of receivables. If in Russian accounting the very creation of reserves is optional and is an element of accounting policy, then according to IFRS, reserves are created not only for overdue, but also for current debt. At the same time, it is the financial and economic services of the company that determine the amount of such a reserve.

2.3 Preparing financial statements of subsidiaries for the preparation of consolidated financial statements

The general requirement for the annual consolidated accounting report is the condition that the property and financial position, as well as the level of income, must be presented in such a way that the group of enterprises looks like a single entity.

The problem is that the balance sheets of the parent and subsidiary companies can be drawn up for different dates and in different currencies, differ in structure, composition, content and valuation of items. International standards stipulate that in this case, in several stages, using the preparation of interim balance sheets, it is necessary to prepare the statements of the group companies for the preparation of consolidated statements, switching to the uniform reporting requirements applied by the parent company.

During the preparation of financial statements, a subsidiary may need to make changes to:

A) in the structure of the balance sheet;

B) the composition and content of balance sheet items;

C) in the assessment of balance sheet items;

D) in the conversion of balance sheet items from one currency to another.

The first stage of preparation for the consolidated report is the regrouping of balance sheet items. The need for it usually does not arise if the subsidiaries are located in the same country as the parent, since then they, as a rule, apply uniform reporting methods. However, foreign subsidiaries reporting in accordance with national requirements are forced to regroup their balance sheets in accordance with the requirements of the parent company.

Then it is necessary to review the content of the balance sheet items for their compliance with the accounting methods adopted in the parent company. It is necessary to pay attention to the valuation of the items that make up the balance sheet and, if necessary, make adjustments. Changes here may be necessary both for foreign subsidiaries and for domestic ones if their accounting policies differ from those of the parent company.

Consolidated financial statements are compiled and presented in millions or billions of rubles with one decimal place.

The parent organization has been granted the right to regulate the issues of financial statements of the Group's organizations by approving its own forms of intra-group financial statements and the rules for their preparation.

If a subsidiary located outside the Russian Federation is unable to prepare financial statements on the same date as the entire Group, then it is allowed to include in the consolidated financial statements indicators of financial statements prepared on a different date, provided that the discrepancy between the reporting dates of the subsidiary and the Group does not exceed three months.

The final point is the recalculation of the balance sheet items of the consolidated foreign enterprises into the currency of the parent company.

The recalculation of the balance sheet of a foreign subsidiary, compiled in a foreign currency, into the currency of the Russian Federation - rubles - for inclusion in the Group's consolidated financial statements is carried out at the exchange rate of the Central Bank of the Russian Federation, the latest quotation in the reporting period, and the recalculation of the amount of income and expenses forming the report on profit and loss of a subsidiary, is made using the rates that were in effect on the relevant dates of transactions in foreign currency, or using the weighted average rate for the reporting period. The differences resulting from such translation should be recognized in additional capital and in the notes to the Group's consolidated financial statements.

3. Main differences in reporting in accordance with Russian and international standards

3.1 Main differences in reporting in accordance with Russian and international standards

While there are strong similarities between the accounting policies permitted under Russian and International Accounting Standards, the use of these options is often based on different underlying principles, theories and objectives. Discrepancies between the Russian accounting system and IFRS lead to significant differences between financial statements prepared in Russia and in Western countries. The main differences between IFRS and the Russian accounting system are related to the historical difference in the final purposes of using financial information. Financial statements prepared in accordance with IFRS are used by investors, as well as other enterprises and financial institutions. Financial statements, which were previously compiled in accordance with the Russian accounting system, were used by government and statistics authorities. Since these user groups had different interests and different information needs, the principles underlying the preparation of financial statements have evolved in different directions.

For example, one of the principles that are mandatory in IFRS, but not always applied in the Russian accounting system, is the priority of content over the form of presentation of financial information. Under IFRS, the substance of transactions or other events is not always what it appears to be based on their legal or recorded form. In accordance with the Russian accounting system, transactions are most often recorded strictly in accordance with their legal form, and do not reflect the economic essence of the transaction. An example where form prevails over substance in the Russian accounting system is the lack of proper documentation for the write-off of property, plant and equipment, which does not give grounds for their write-off, despite the fact that management is aware that such items no longer exist at the stated carrying amount.

The second main principle of international accounting standards, which distinguishes them from the Russian accounting system, and leads to the emergence of multiple differences in financial statements, is the reflection of costs. International Accounting Standards require compliance with the principle that costs are recognized in the period in which revenue is expected to be earned, while in the Russian accounting system, costs are recognized after certain documentation requirements have been met. The need for proper documentation often prevents Russian enterprises from accounting for all transactions related to a certain period. This difference results in differences in the timing of accounting for these transactions.

The Russian income statement also has its own characteristics. International Accounting Standards prescribe to follow the compliance principle, according to which costs are recognized in the period of expected receipt of income, and in the Russian accounting system, costs are recognized after certain documentation requirements are met. The requirement for proper documentation often prevents Russian enterprises from accounting for all transactions relating to a particular period. The fundamental principle of IFRS, which is that the content of financial statements is more important than the form of presentation of information or its extraction, is in conflict with the provision that there must be sufficient documentation to reflect the transaction. The difference in the timing of accounting for transactions for which there is no sufficient documentation in accordance with the Russian accounting system leads to numerous discrepancies between IFRS and the Russian accounting system in the income statement.

One of the significant differences in the approach to the income statement in Russia and international practice was eliminated during the reform. As you know, until recently, the moment of product sale could be taken as the moment of payment for the product or the moment of its shipment, and the vast majority of enterprises used the first, so-called "cash" method of accounting. Since January 1, 1996, in accounting, the moment of sale of products is determined, as a rule, only by the moment of shipment, as in Western practice. However, for tax purposes, both options for determining the moment of sale can be used.

Income tax is recognized in the income statement in IFRS format after calculating the profit and loss from all business activities. This provision is consistent with the requirements of the new form of the Russian statement of financial results and their use, except that many expenses taken into account in calculating the financial result before tax in accordance with IFRS are treated in the Russian accounting system as a use of profit. The use of profit includes expenses that do not reduce taxable profit in accordance with the requirements of the Russian accounting system.

In addition, it should be noted: in paragraph 1.3 of the Instructions to the Order of the Ministry of Finance of Russia dated July 28, 1995 No. 81, it is stipulated that each organization that has subsidiaries and affiliates must draw up consolidated annual financial statements. This requirement is in line with IFRS. The only difference is that, according to IFRS, consolidated financial statements include performance indicators not only for subsidiaries and affiliates, but also for joint ventures.

International standards (as well as standards of individual countries) differentiate between subsidiaries, jointly controlled companies and associates. This division is due to varying degrees of control, or influence of the parent company on a particular enterprise. Control for consolidated reporting purposes can be decisive, joint and significant. First of all, it is necessary to single out subsidiaries, on which, according to IFRS, the parent company has a decisive influence, i.e. has the ability to directly or indirectly ensure the adoption of certain decisions. Typically, this degree of control is achieved if the parent company has more than 50% of the voting shares or authorized capital of the subsidiary. This condition is stipulated by both international and Russian rules. However, an important flaw in Russian regulatory documents should be pointed out: they do not provide that, when determining the share of a parent company in a particular enterprise, its share of shares or authorized capital must be added to the shares and shares owned by other subsidiaries of this parent company.

A situation may arise when the parent company has less than half of the votes, but fully controls the subsidiary in accordance with the provisions of its charter on the basis of an agreement concluded with it on the parent company's leadership role, on the basis of an agreement with other shareholders and shareholders, etc. In terms of consolidation, fully controlled, i.e. subsidiary, the enterprise can be considered as belonging to the concern, as its integral part. Therefore, the reporting data of subsidiaries in the preparation of consolidated financial statements are used in their full amount.

Thus, between Russian and international standards there is a very a large number of differences, both fundamental and less significant. To assess the scale of such discrepancies, it is necessary to compare two sets of consolidated financial statements for 1998 prepared by RAO Gazprom. One of them was prepared in accordance with Russian legislation, and the other - in accordance with IFRS. It turned out that the discrepancy in net profit amounted to more than 100 billion rubles - 42.49 billion rubles of net loss according to Russian accounting rules and 147.22 billion according to IFRS. The discrepancy in the definition of reserves (excluding the reserve for doubtful debts) amounted to 45.4 billion rubles, and in relation to the reserve for doubtful debts - 20.6 billion rubles. The amount, which according to Russian rules is attributed to capital, and in accordance with IFRS is an expense, reaches 29.5 billion rubles. The amount of income on monetary items, which is not recognized in accordance with Russian accounting and is recognized in accordance with IFRS, is 62.9 billion rubles. There are other equally significant differences.

Therefore, at this stage of reforming the accounting system, there should be a consistent smoothing of inconsistencies, which will contribute to a more successful promotion of Russian companies on the capital markets. At the same time, speaking about reforming, it should be emphasized that automatic, without any changes, the adoption of IFRS is impossible. After all, in fact, international standards are a compromise between the leading accounting systems in the world.

I would like to note that the Group may not prepare consolidated financial statements in accordance with the rules provided for by regulatory enactments and guidelines according to the accounting of the Ministry of Finance of Russia, if the following conditions are simultaneously met:

A) the consolidated financial statements are prepared on the basis of IFRS;

B) the Group ensures the reliability of consolidated financial statements;

C) an explanatory note to the consolidated financial statements contains a list of applicable accounting requirements, discloses accounting methods, including estimates that differ from Russian accounting rules.

3.2 The problem of transforming Russian reporting in accordance with IFRS

The transformation of financial statements in accordance with the requirements of IFRS is becoming increasingly relevant. However, it should be noted that there is no single methodology for the transformation of reporting. According to experts, reporting in accordance with IFRS can be obtained in 3 ways: the method of transformation of reporting, the method of translation of postings and the method parallel accounting.

The first two methods are the simplest, however, they can give an error of 10% to 50%. As a rule, they are based on the construction of special transformation tables. For example, when compiling the consolidated financial statements of RAO "UES of Russia" for 1998, 28 such tables were developed. There are five main transformation tables:

A) a summary table of ruble corrective (transformation, corrective) entries;

B) a summary table of currency adjusting entries;

C) summary table of balance sheet transformation;

D) a summary table of corrective entries for the regrouping of income statement items;

E) a summary table of the transformation of the income statement.

All tables are interconnected and allow you to end up with a transformed income statement and balance sheet. The disadvantages of this technique, in addition to possible errors, include the fact that information prepared in accordance with IFRS can be obtained only at the end of the period, and after the completion of the main transformation process, adjustments have to be made.

Parallel accounting (otherwise it is called the method of double accounting) is carried out using special software. To maintain parallel accounting, the system uses two charts of accounts: Russian and international. When setting up standard transactions, both Russian and international posting templates are recorded. Transactions entered are automatically posted to various modules, which gives maximum detail information. At the same time, it is necessary to take into account a number of features in the automated transformation of financial statements.

Conclusion

While working on the topic: “Peculiarities of compiling consolidated (consolidated) reporting in Russia”, the following issues were considered:

A) the concept of consolidated and consolidated reporting; determination of business entities that should prepare consolidated (consolidated) statements; the principles on which reliable consolidated reporting is based;

B) the procedure for compiling summary (consolidated) statements; the problem of formation of summary (consolidated) financial statements;

C) the main differences in reporting in accordance with Russian and international standards; the problem is the transformation of financial statements in accordance with the requirements of IFRS.

As a result of the work, we can conclude:

Consolidated financial statements are a system of indicators reflecting the financial position as of the reporting date and financial results for the reporting period of a group of related organizations. In other words, consolidated financial statements are prepared for a group of legally and economically related organizations, each of which is an independent legal entity.

When forming a reliable summary (consolidated) reporting, the source information should be based on certain principles: the principle of completeness; principle of own capital; the principle of a fair and reliable assessment; the principle of constancy in the use of consolidation and valuation methods and the principle of a going concern; the principle of materiality; common assessment methods; single date of compilation.

Almost all of the considered principles on which consolidated financial statements are based, in accordance with international standards, are also reflected in Russian regulatory documents governing the preparation of consolidated financial statements.

When comparing the consolidated financial statements prepared in accordance with the rules provided for by the regulations and methodological guidelines for accounting of the Ministry of Finance of Russia and the consolidated statements prepared on the basis of IFRS, it can be seen that the reporting data prepared in accordance with Russian rules differs significantly from the financial information prepared in accordance with IFRS .

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The concept of "consolidated reporting" and "consolidated reporting". Drawing up consolidated reports for one owner or for statistical generalization of data. Preparation of consolidated financial statements by several owners on joint property.

When we use the term "reporting", we consider the financial statements of the organization, without delving into its organizational and economic structures. Modern large organizations can combine several enterprises with different participation systems. Under one name there is not one enterprise, but a whole group of related enterprises. Organizations that have subsidiaries in their structure compile consolidated statements, which in our country are called consolidated statements.

For a long time, "combination of reporting" was understood as an elementary summation of items in the balance sheets of enterprises that are part of a single economic complex. This carried the possibility of biased reflection in the consolidated financial statements of the performance indicators of the group of enterprises as a whole. Inaccuracies and distortions may result from:

double accounting of funds contributed by the parent organization to the authorized capital of subsidiaries;
overstatement of the balance sheet currency due to the inclusion of intra-group debt in the balance sheet;
inclusion in the financial results of profit received from intragroup sales, etc.

The summation method was used to compile the consolidated statements of Soviet enterprises. The basis for compiling consolidated reporting is state ownership of the means of production and the sectoral principle of vertical subordination of organizations. There were two methods of its compilation, namely: factory and branch.

In fact, the concepts of "consolidated reporting" and "consolidated reporting" are not identical. Specialists involved in the issues of consolidated reporting, believe that the use of these two concepts as synonyms is incorrect, because these reporting forms differ not only in purpose, compilation technique, range of users, but also conceptually. Consolidated reporting is compiled within the framework of one owner or for statistical generalization of data, and consolidated- several owners of jointly controlled property.

Order No. 112 of the Ministry of Finance of Russia dated December 30, 1996 “On methodological recommendations for the preparation and presentation of consolidated financial statements” provides a detailed description of the general provisions of consolidated (consolidated) statements, the procedure for its preparation and presentation, the rules for combining indicators of the financial statements of the parent organization and subsidiaries companies, the rules for including data on dependent companies in the consolidated financial statements, as well as the rules for compiling explanations for the consolidated balance sheet and the consolidated income statement.

In particular, in order No. 112 summary reporting characterized as "a system of indicators reflecting the financial position at the reporting date and financial results for the reporting period of a group of related organizations."

When compiling consolidated financial statements, the goal is set: to eliminate (exclude) the influence of the above factors (distorting reporting data) on the performance of the group as a whole. The achievement of this goal is facilitated by the implementation of a whole range of measures. It should be noted that in countries with developed and highly integrated economies, where corporate groups have long existed, close attention is paid to these issues.

For the first time in world practice, American companies applied consolidation and published a consolidated report at the very beginning of the 20th century. This was due to the large scale concentration and centralization of capital, the emergence of holdings, concerns. The first company to publish consolidated financial statements was the United States Steel Company.

Later, consolidated reporting began to be compiled in European countries. This happened in the late 40s of the 20th century. In the UK legislation, the first mention of consolidated reporting dates back to 1947, in West Germany - to 1965, and in France - to 1986. However, the first publications on this issue appeared in the UK back in the 20s. The London Stock Exchange began requiring consolidated financial statements in 1939. Only 22 French companies published consolidated balance sheets in 1967, but it was not until 1986 that such publication became mandatory in France. In Germany, reporting consolidation has only been mandatory since 1990, subject to the following conditions:

majority vote;
personal influence providing control;
contract control;
control based on constituent documents - the emphasis is on actual control.

To an even lesser extent, consolidated reporting is common in other European countries - Spain, Italy, Greece.

The emergence of transnational corporations with a high share of foreign assets, export operations and labor force abroad, the creation of enterprises with the participation of foreign capital, the emergence of various forms of commercial, industrial, financial ties between companies required the presentation of information about their activities in the form of consolidated statements.

The theory and practice of preparing consolidated financial statements in different countries differ significantly in the following main points:

uneven distribution of consolidated financial statements;
different approaches to understanding the category "group of companies" in terms of consolidation;
unequal volumes of information published by companies;
different methods of consolidation.

The general idea of consolidation is very simple in its essence. There is a group of enterprises that are interconnected in economic and financial terms, but which are independent legal entities. It is necessary to draw up consolidated statements that allow you to get an idea of the financial position and results of the group as a whole. At the same time, each legally independent enterprise that is part of a corporate group is obliged to maintain its own accounting records and draw up its results in the form of its own financial statements.

When analyzing the activities of groups, their private balance sheets do not provide a comprehensive picture of the overall performance results, as they are limited and lose their analytical capabilities. There is a need for fundamentally different information, which is formed as a result of the preparation of consolidated financial statements. Its task is to reflect the actual picture of the property, financial situation and results of economic activity of a group of legally independent enterprises, which are considered as one economic community.

In this way, consolidated financial statements are a combination using special accounting procedures (rather than simple summation) of the statements of two or more enterprises that are in certain legal and financial and economic relationships, when one or more legally independent enterprises are controlled by only one company - the so-called parent (parent) society, standing above all other members of the group .

The consolidated reports show what the reports of the organization would be like if it closed all subsidiaries and directly managed their activities within one legal entity.

Issues of the procedure for the preparation, structure and purpose of consolidated financial statements are reflected in several International Financial Reporting Standards (IAS). In particular, the most important standards for the problems of consolidated reporting are: 22 "Combining companies" (IAS 22 "Business Combinations"); 25 "Accounting for investments" (IAS 25 "Accounting for Investments"); 27 "Consolidated financial reporting and accounting for investments in subsidiaries" (IAS 27 "Consolidated Financial Statements and Accounting for Investments in Subsidiaries"); 28 "Accounting for investments in associates" (IAS 28 "Accounting for Investmens in Associates"), 31 "Financial reporting on participation in joint ventures" ( IAS 31 "Financial Reporting of Interests in Joint Ventures").

One of the most complex standards, without which it is extremely difficult to understand the procedure for preparing consolidated financial statements, is IFRS 22 Business Combinations. The purpose of this standard is to describe methodological accounting issues in business combinations. It deals with examples of the acquisition of one enterprise by another, as well as situations where it is impossible to determine the acquiring enterprise. The same standard deals with the issues of determining the acquisition cost, its distribution between the acquired identifiable assets and liabilities of the enterprise, the problems of accounting for the emerging positive or negative business reputation, and its further depreciation. Equally important is the definition of the minority share in the capital of the group.

International financial reporting standards also provide all the basic definitions of various concepts, one way or another related to consolidated reporting.

Consolidation is a generalization of the commercial and financial results of a group of enterprises considered as a single economic unit.

Group (corporation)- an association of enterprises (companies) that is not a legal entity and consists of a holding (parent) company and all its subsidiaries, which in turn are legal entities.

Parent company (holding company, parent company)- the holder of a controlling stake in subsidiaries or other enterprises, controls the activities of one or more subsidiaries. Responsible for preparing consolidated financial statements.

Controlling stake(more than 50% of ordinary shares at par value with voting rights) provides a solution to the issues of distribution of income, appointment of all or most members of the board or board of directors of the controlled enterprise. The parent enterprise, together with subsidiaries and other enterprises, forms a group and has the right and opportunity to derive economic benefits from subsidiaries. The concept of the parent company is based on the existence of legal control.

Subsidiary company (company) is recognized as such if another company, called the parent company, as a result of a predominant participation in its authorized capital, or in accordance with an agreement between them, or otherwise exercises existing control over its activities, has the ability to determine the decisions taken by such a company.

Consolidated financial statements is compiled by the parent company for the entire set of controlled companies (enterprises) and reflects the financial position and results of economic activity of all companies included in the scope of consolidation as a single economic entity. Consolidated financial statements are required by all who have or expect to have interests in this group of companies: investors, creditors, suppliers and customers, staff and trade unions, banks and other financial institutions, government agencies and local authorities.

Group (scope) of consolidation- the parent company with all its subsidiaries. The set of companies for which consolidated financial statements are to be prepared.

Consolidated balance- the consolidated balance sheet of all companies included in this area of consolidation. An integral part of the consolidated financial statements. The property, liabilities and equity of a subsidiary are included in the consolidated balance sheet from the date on which the acquirer effectively transfers control of the acquired subsidiary when the acquirer has the ability to govern the financial and operating policies of the acquired subsidiary.

Consolidated income statement includes the results of financial and economic activities of all companies included in this area of consolidation. It is a mandatory element of the consolidated financial statements.

The results of a subsidiary are included in the consolidated income statement from the date the company is acquired and recognized as a subsidiary.

The results of operations of a subsidiary that ceases to be a subsidiary (for example, as a result of a sale) are included in the consolidated income statement up to the date from which the parent company ceases to have existing control over it. The difference between the proceeds from the sale of a subsidiary and the carrying amount of its net assets at the date of sale is recognized in the consolidated income statement for the relevant reporting period.

Consolidated financial statements- financial statements of the group presented as a single business entity.

Control of financial and economic activities- the right of a company to establish the principles of financial and production (commercial) activities of another company in order to benefit from it.

Operational control is considered to exist when the parent company owns, directly or through a subsidiary, more than half of the voting shares of the controlled entity, and also when, with a smaller number of shares, the controlling company has:

a) the ability to dispose, by agreement with other investors, of more than half of the votes;

b) the ability to determine the principles of the company's activities, enshrined in its charter or in a special agreement;

c) the right to appoint and remove the majority of the members of the board of directors or other similar company management body;

Thus, unconditional control implies the holding company's possession of more than 50% of the ordinary shares of a subsidiary, indirect - with a smaller share of participation with the possibility of additional influence.

Joint control- control over the activities of an enterprise (company) subject to consolidation, carried out jointly by two or more other companies.

Business combination- connection of independent enterprises into a single economic unit as a result of a merger or as a result of the acquisition of control by one enterprise over the net assets and production activities of another enterprise.

Purchase (acquisition) A business combination in which one of the entities, called the acquirer, obtains control of the net assets and operations of the other entity being acquired in exchange for transferring assets, incurring liabilities or issuing shares.

Merger, or consolidation, of capital shares- a business combination in which the shareholders of the combined entities control all or nearly all of the common net assets and operating activities to share the risk and profits of the combined entities such that neither party can be identified as acquiring.

Control - the authority to manage the financial and production activities of the enterprise in order to make a profit.

Minority interest (share of minority shareholders), owning less than 50% of the shares - part of the net results of operations and net assets of a subsidiary attributable to the share that the parent company does not own directly or indirectly through subsidiaries. IAS 27 specifically states that minority interests are shown separately from liabilities and equity of the parent company in the consolidated balance sheet. In the consolidated income statement, minority interests in the profits of the consolidated group of companies are presented separately.

fair value- the amount at which an asset can be exchanged or a liability repaid by interested knowledgeable parties in an upcoming transaction in the near future.

Date of purchase (acquisition)- the date of establishment of control over the net assets and production activities of the acquired enterprise.

The Russian legislation also reflects issues related to the definition of certain concepts and terms of consolidated reporting.

In accordance with Art. 105 of the Civil Code of the Russian Federation, a business company is recognized as a subsidiary if another (main) business company or partnership, by virtue of its predominant participation in its authorized capital, or in accordance with an agreement concluded between them, or otherwise has the ability to determine decisions made by such a company. A subsidiary company is not liable for the debts of the main company (partnership). The parent company (partnership), which has the right to issue mandatory instructions to the subsidiary, is jointly and severally liable with the subsidiary for transactions concluded by the latter in pursuance of such instructions. In case of insolvency of a subsidiary company through the fault of the main company (partnership), the latter bears subsidiary liability for its debts.

In Art. 106 of the Civil Code of the Russian Federation, a dependent economic company is defined, which is recognized as such if another (predominant, participating) company has more than 20% of the voting shares of a joint-stock company or 20% of the authorized capital of a limited liability company. Only a joint-stock company and a limited liability company can be both dependent and predominant. The limits of mutual participation of economic companies in the authorized capital of each other and the number of votes that one of such companies can use at the general meeting of participants or shareholders of another company are determined by law.

In addition, the State Committee of the Russian Federation for Antimonopoly Policy and Support of New Economic Structures (SCAP of Russia), in the appendix to Order No. 145 dated November 13, 1995 “On approval and submission for registration of the Regulations on the procedure for submitting petitions and notifications to antimonopoly authorities in accordance with the requirements of Articles 17 and 18 of the Law of the Russian Federation "On Competition and Restriction of Monopolistic Activities in Commodity Markets"" gives definitions specifying the articles of the Civil Code of the Russian Federation.

A group of persons is a set of legal or legal entities and individuals, in relation to which one or more conditions are met:

a person or several persons jointly as a result of an agreement (concerted actions) have the right to directly or indirectly dispose (including on the basis of sales contracts, trust management, joint activity agreements, commissions or other transactions) more than 50% of the total number of votes, attributable to shares (deposits, shares) that make up the authorized (share) capital of a legal entity. Under the indirect disposal of the votes of a legal entity is understood the possibility of their actual disposal through third parties, in relation to which the first person has the specified right or authority;
an agreement has been concluded between two or more persons, which is granted the right to determine the conditions for conducting business activities of one or more participants in the agreement or other persons or to exercise the functions of their executive body;
the person has the right to appoint more than 50% of the executive body and (or) the board of directors (supervisory board) of the legal entity;
the same individuals represent more than 50% of the composition of the executive body and (or) the board of directors (supervisory board) of two or more legal entities.

Direct control is interpreted as the ability of a legal entity or individual to determine the decisions made by a legal entity through one or more actions:

orders, including jointly with other persons as a result of an agreement (concerted actions), more than 50% of the total number of votes attributable to shares (deposits, shares) that make up the authorized (share) capital of a legal entity;
obtaining the right to determine, including jointly with other persons, the conditions for conducting business activities of a legal entity or to exercise the functions of its executive body;
obtaining the right to appoint more than 50% of the executive body and (or) the board of directors (supervisory board) of a legal entity;
participation together with the same individuals in the executive body and (or) the board of directors (supervisory board) of two or more legal entities with the representation of more than 50% of the composition of their management body.

indirect control is considered as an opportunity for a legal entity or an individual to determine decisions made by a legal entity through third parties, in relation to which the former has one or more rights or powers:

dispose, including jointly with other persons as a result of an agreement (concerted actions), more than 50% of the total number of votes attributable to shares (deposits, shares) that make up the authorized (share) capital of a legal entity;
determine, including jointly with other persons, the conditions for conducting business activities of a legal entity or perform the functions of its executive body;
appoint more than 50% of the executive body and (or) the board of directors (supervisory board) of the legal entity;
participate together with the same individuals in the executive body and (or) the board of directors (supervisory board) of two or more legal entities, representing more than 50% of the composition of their management body.

A member of a group of persons is a legal or natural person that directly or indirectly controls another legal entity, or is directly or indirectly controlled by another person.

Members of one group of persons are:

persons directly or indirectly controlling one legal entity, including that legal entity;
persons controlled by persons referred to in the previous paragraph.

The definition of control, established in modern Russian legislation, is key in determining whether it is necessary to draw up consolidated financial statements. It is close enough to the definition of control in foreign countries.

At the same time, there is no concept of a parent company in Russian legislation, the equivalent of which in the Civil Code of the Russian Federation is in some cases main society(partnership), and in others - dominant society or central company in financial and industrial groups.

The Russian definition of a subsidiary is, in essence, quite similar to the definition given in international standards, and Russian affiliates can be called an analogue of British associated or related companies, the definition of which is contained in international standards.

Other issues of preparing consolidated financial statements are supplemented and specified in the Federal Law of November 30, 1995 No. 190-FZ “On Financial and Industrial Groups”.

In this Law financial and industrial group (FIG) is defined as a set of legal entities acting as parent and subsidiary companies or who have fully or partially combined their tangible and intangible assets (participation system), on the basis of an agreement on the establishment of FIGs for the purpose of technological or economic integration for the implementation of investment and other projects and programs aimed at to increase competitiveness and expand markets for goods and services, increase production efficiency, and create new jobs.

The FIG acts on behalf of the participants of the FIG in relations related to the creation and activities of the FIG; maintains summary (consolidated) accounting, reporting and balance of financial and industrial groups; prepares an annual report on the activities of the group.

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Table 9.1

Method of inclusion in the consolidated financial statements of the data group of subsidiaries and affiliates

Type of subordinate company and type of investment	The degree of influence of the parent (main) company	Method of inclusion in the consolidated financial statements
1. Subsidiary company (if the parent organization has more than 50% of the voting shares of JSC or more than 50% of the authorized capital of LLC)	Decisive influence, total control	Full Consolidation
2. Joint company	Joint control and influence	Proportional consolidation method (quota consolidation)
3. Dependent company (if the parent organization has from 20 to 50% of the voting shares of a JSC or from 20 to 50% of the authorized capital of an LLC)	Significant impact	Equity Consolidation Method
Financial investments in the capital of the parent company (one-time	Long-term relationships without significant influence or presence of influence in connection with the acquisition of a share in a company for the purpose of sale	General procedure provided for financial investments

We found out why consolidated financial statements are prepared. But an important role is also played by the answer to the question: “For whom is consolidated reporting prepared?”. The need for consolidated reporting is primarily determined by the needs of its consumers. Consumers of consolidated financial statements include:

shareholders of the parent company and subsidiaries;
external investors;
creditors;
group management;
management and supervisory board of the parent company and subsidiaries;
government authorities;
buyers;
suppliers;
analysts and consultants;
business circles and the public.

Consolidated financial statements are addressed to the management and supervisory boards of enterprises that are part of the corporate family, founders, as well as external consumers of information, such as existing and potential investors, creditors, suppliers, buyers, the state. Thus, it turns out to be closed on the information function. For external users, it acts as additional information that eliminates the limitations of private balances. For the parent company, consolidated reporting is a kind of "extension" and "supplement" to its reporting.

Consolidation should ensure that the mutual transactions of the group companies are not repeated.

The consolidated financial statements combine the financial statements of the parent organization and subsidiaries, compiled for the same reporting period and on the same reporting date.

The organization must compile consolidated financial statements in the amount and manner established by the Accounting Regulations "Accounting Statements of the Organization" (PBU 4/99), in the forms developed by the parent organization on the basis of standard forms of financial statements. Wherein

forms of financial statements can be supplemented with data required by users of consolidated financial statements;
articles (lines) of accounting forms for which the group does not have indicators may not be given, except in cases where the corresponding indicators were obtained in the period preceding the reporting period;
Numerical indicators of individual assets, liabilities and business transactions should be presented in the consolidated financial statements separately, if without knowledge of them it is impossible for users to assess the financial position of the group or the financial result of its activities. Numerical indicators for certain types of assets, liabilities and business transactions are not presented in the consolidated balance sheet or consolidated profit and loss statement, if each of these indicators separately is not significant for the users' assessment of the financial position of the group or the financial result of its activities, but is reflected in the total amount in the notes to the consolidated balance sheet and the consolidated income statement.

The parent organization adheres to the accepted form of the consolidated balance sheet, consolidated income statement and explanations to them from one reporting period to another. Changes in selected forms of the consolidated balance sheet, consolidated income statement and explanations to them are disclosed in the explanations to these reporting forms, indicating the reasons that caused this change.

The name of each component of the consolidated financial statements must contain the word "consolidated" and the name of the group.

Consolidated financial statements are submitted to the founders (participants) of the parent organization, and to other interested users - in cases established by the legislation of the Russian Federation, or by decision of the parent organization.

The consolidated financial statements are signed by the head and chief accountant (accountant) of the head organization.

By decision of the group members, consolidated financial statements may be published as part of the published financial statements of the parent organization.

to the consolidated financial statements reports of enterprises that are in principle included in the scope of consolidation, but are not of interest to the consolidation are not included. These include:

companies, control over which can be considered temporary. For example, a controlling interest in a subsidiary is acquired and owned by the parent company solely for the purpose of its subsequent sale in the near future;
subsidiaries operating under conditions of long-term insurmountable restrictions that deprive them of the ability (or significantly reduce it) to transfer funds to the account of the parent company. For example, due to currency restrictions at foreign branches, “blocking” of bank accounts, etc.;
subsidiaries whose economic activity differs sharply from the nature of the activities of the main parent company, for example, a bank and an industrial joint-stock company, a trading and insurance company.

Thus, the consolidation procedure covers such calculations as:

capital consolidation;
consolidation of balance sheet items related to intra-group settlements and operations;
consolidation of financial results (profit or loss) from intra-group sales of products (works, services), as well as mutual volumes of sales of products (works, services) between the parent and subsidiaries and related costs;
consolidation of other mutual (operating and non-operating) income and expenses within the group;
the amount of dividends of the parent and subsidiaries.

In accordance with international standards, consolidated reporting must be based on certain principles and methods (meet certain requirements).

The principle of completeness. All assets, liabilities, deferred expenses, deferred income of the consolidated group are accepted in full, regardless of the share of the parent company. Minority interest is shown in the balance sheet as a separate item under the appropriate heading.
The principle of equity. Since the parent company and subsidiaries are treated as a single economic unit, equity is determined by the book value of the shares of the consolidated enterprises, as well as by the financial results of these enterprises and reserves.
The principle of a fair and reliable assessment. Consolidated financial statements must be presented in a clear and easy to understand form and give a true and fair picture of the assets, liabilities, financial position, profits and losses of the enterprises included in the group and considered as a whole.
The principle of constancy in the use of consolidation and valuation methods and the principle of a going concern. Consolidation methods should be applied for a long time, provided that the enterprise is functioning, i.e. does not intend to cease operations in the foreseeable future. Deviations are permissible in exceptional cases, and they must be disclosed in the annexes to the reporting with the appropriate justification. These principles apply to both forms and methods of preparing consolidated financial statements.
The principle of materiality. This principle provides for the disclosure of such items, the value of which may affect the adoption or change of a decision on the financial and economic activities of the company.
Unified assessment methods. Assets, liabilities, prepaid expenses, profits and expenses of the consolidated company must be taken into account in their entirety. It does not matter how they are presented in the current accounting and reporting of the enterprises belonging to the group, since the parent company does not impose a prohibition and does not implement selective accounting approaches. It is important that when consolidating the assets and liabilities of the parent company and subsidiaries, they are valued according to the same methodology used by the parent company. Valuation methods in accordance with the legislation that the parent company complies with should be applied in the preparation of consolidated financial statements.
Single compilation date. Consolidated accounts should be prepared as of the parent company's balance sheet date Subsidiaries should also be restated as of the consolidated balance sheet date.

Most of the principles discussed above, on which consolidated financial statements are based in accordance with international standards, are also reflected in Russian regulatory documents governing the preparation of consolidated financial statements.

Depending on the presence or absence of mutual operations, the following stages of consolidation can be distinguished:

primary consolidation is made when compiling for the first time the consolidated financial statements of previously independent enterprises and is associated with the acquisition of an investee enterprise;
subsequent consolidation is made when compiling the consolidated financial statements of a group formed earlier and already carrying out mutual operations.

The technique and methods of preparing consolidated financial statements vary from country to country.

Depending on the nature of the transaction, when investing and establishing control, there are two methods for compiling primary consolidated financial statements:

method of purchase (acquisition);
merger (acquisition) method.

These methods differ procedurally and have a large impact on the aggregate financial results presented in the consolidated financial statements.

Independent enterprises can be combined into a single economic unit. Combinations may result in the creation of a new entity that takes control of the combining entities, the transfer of the net assets of one or more of the combining entities to another entity, or the dissolution of one or more of the combining entities.

The merger may be carried out by purchasing the net assets or shares of another enterprise.

The merger can also be carried out by merging. Although the requirements for a legal merger vary from country to country, it is usually a combination of two businesses in which:

assets and liabilities of one enterprise are transferred to another enterprise and the first one is liquidated;
the assets and liabilities of the two enterprises are merged into a new enterprise and the two former enterprises are liquidated.

Associations are of horizontal, vertical and conglomerate types.

Horizontal union- when one enterprise is merged with another and both of them belong to a single industry.

Vertical join- when enterprises that are at different poles of the production process and interact according to the scheme “supplier-manufacturer-buyer” merge.

conglomerate association- when a diversified association is created from enterprises of diversified affiliation.

Combination transactions in which one of the combining entities acquires control of the other are considered purchases.

The date of purchase is the date from which the acquirer has the right to govern the financial and operating policies of the acquiree in order to benefit from its activities. In practice, this date is the date of the general meeting of shareholders that approves the transaction and makes the necessary changes to the constituent documents.

Control is deemed to be established when one of the combining entities acquires the right to more than one-half of the voting rights of the other combining entity, unless (in exceptional cases) it can be clearly demonstrated that such ownership does not entail control.

Additional signs of control:

the right to more than half of the votes of another enterprise by virtue of an agreement with other investors;
the right to manage the financial and production policies of another enterprise in accordance with the charter or agreement;
the right to appoint or replace a majority of the members of the management board or an equivalent governing body of another enterprise;
the right to cast a majority of votes at meetings of the management board or an equivalent management body of another enterprise.

If it is difficult to determine the buyer company, you can be guided by additional indirect signs of the purchase:

the fair value ratio of the merging entities (the larger entity is the acquirer);
the exchange of voting shares for cash (in such cases, the paying enterprise is the buyer);
the ability to decide on the selection of management personnel for another enterprise (in such cases, the dominant enterprise is the buyer).

Sometimes an entity acquires shares in another entity, but as compensation issues enough of its own voting rights so that control of the combined entities passes to the owners of the entity in which the shares were acquired in the first place. Such a situation is called reverse acquisition. Legally, the entity issuing the shares may be treated as either the parent entity or the successor entity to whose shareholders control of the combined entities is transferred. In this case, it becomes the acquiring enterprise and receives the right to vote or other rights. The entity issuing the shares is considered to have been acquired by another entity; the latter is treated as the buyer and the purchase method is applied to the assets and liabilities of the entity issuing the shares.

When the shareholders of the merging enterprises do not create a dominant partner, but are merged on essentially equal terms in order to share control over all or almost all assets and production activities, then we are talking about a merger. In addition, the administration of the combined enterprises participates in the management of the combined structure and, as a result, the shareholders of the enterprises jointly share the risks and rewards. similar structure. For example, the American automobile giant Chrysler and the German concern Daimler Benz merged into one company, Daimler Chrysler.

Confluence entity is that no acquisition takes place and the joint sharing of risks and rewards continues, as it were, before the business combination. In a merger, the combined entities continue to operate separately as before, although they are under common, joint control. Accordingly, when the individual financial statements are combined, only minimal changes occur.

Mergers are subject to stringent requirements. For a transaction to be classified as a merger rather than an acquisition, 12 conditions must be met.

Either of the combining parties must not be a subsidiary or division of another combining enterprise for two years.
Each of the merging parties must be independent of the other merging entities.
The merger is carried out as a single transaction in accordance with a special plan within one year after the adoption of such a plan.
At the completion date of the merger plan, one of the merging entities will issue only ordinary shares with rights identical to those of outstanding shares in exchange for substantially all of the voting ordinary shares of the other entity. Their share must be at least 90% of the common voting shares to be exchanged.
Neither of the merging parties, during the two years prior to the adoption of the merger plan or between its adoption and completion, intends to make changes to the equity structure in order to affect the terms of the exchange, for example, through an additional issue of shares, their distribution to existing shareholders, an exchange or withdrawal from circulation.
The merging entities, after the adoption of the plan and before its completion, purchase ordinary shares in the usual amount for purposes other than the merger.
As a result of the exchange of shares, the shares of the owners of ordinary shares remain the same.
Shareholders are not deprived of their voting rights, and their rights are not infringed during the duration of the merger plan. Shareholders get the opportunity to exercise their voting rights when receiving new shares.
The merger is adopted by voting on the date of completion of the merger plan; it does not provide for any unfulfilled conditions for the issuance of shares.
The combined company does not expressly or implicitly agree to redeem or retire all or part of the ordinary shares for the purpose of influencing the combination.
The combined company does not enter into financial transactions for the benefit of former shareholders, for example, does not use the shares issued for the combination as collateral for loans.
The combined company does not plan to dispose of a significant portion of its assets within two years of the merger, except in transactions that are customary for the merged entities or to eliminate duplication or excess capacity.

Since the merger results in the creation of a single structure, the combined entity adopts a single unified accounting policy. Therefore, the combined entity recognizes the assets, liabilities and equity of the combining entities at their current carrying amounts, adjusted only to align the accounting policies of the combining entities and apply them to all reporting periods presented.

For any business combination, the financial statements should provide additional information:

names and descriptions of the merging entities;
accounting methods;
the effective date of the combination for accounting purposes;
information about the production activities that it was decided to liquidate.

When buying, you must provide the following information:

percentage of voting shares acquired;
the cost of the acquisition and the value of the purchase consideration paid or contingently payable;
details of the nature and amount of the restructuring allowance and other closure costs arising from the acquisition and recognized at the acquisition date.

The financial statements should disclose:

methods of accounting for positive and negative business reputation, including for the depreciation period;
justification of the useful life of positive and negative goodwill or amortization period for negative goodwill;
depreciation methods;
the results of reconciliation of the residual value of positive and negative goodwill.

In case of a merger, it is necessary to provide additional data in the reporting regarding:

the description and number of shares issued, along with the percentage of each enterprise's voting shares exchanged for the purpose of pooling capital shares;
the amount of assets and liabilities contributed by each enterprise;
details of sales income, other operating income, extraordinary items, and the net profit or loss of each entity prior to the date of the combination, which are included in the net profit or loss in the combined entity's financial statements.

Consolidated reporting includes, in addition to the balance sheet, a consolidated income statement. When compiling such a report, the financial results of the activities of the merging companies, their presentation will depend on the method of consolidation - purchase or merger.

In case of an acquisition, financial results are included in the consolidated income statement only from the date of acquisition, and in case of a merger - for the entire financial year.

It should be noted that the merger is more preferable for enterprises seeking to maximize sales, profits, assets and minimize costs as a result of such a combination.

The next stage of consolidation - the consolidation of the reporting of enterprises that have worked for some time in the group - has a number of features.

When consolidating the financial statements of companies within the group, in subsequent periods of their activity, additional difficulties arise due to the need to eliminate items reflecting mutual intra-company transactions in order to avoid double counting and artificially inflating the amount of capital and financial results.

Articles to be eliminated- these are items that are excluded from the consolidated financial statements because they lead to a double counting and misrepresentation of the group's financial performance.

The concept of a group implies a special relationship to transactions between companies within the group. Intra-company transactions are similar to transactions between divisions (departments) within a company. Such operations are carried out in the course of trade transactions and settlements on them, the issuance of loans, and the receipt of dividends. All such transactions should be eliminated in the preparation of the consolidated balance sheet and income statement, as well as intercompany settlement balances.

When preparing consolidated financial statements, the following calculations are subject to elimination:

debt on contributions not yet made to the authorized capital;
advances received or given;
loans of companies belonging to the group;
mutual receivables and payables of the group companies (since a single economic unit cannot have receivables or payables to itself);
other assets and securities;
deferred expenses and income;
unexpected operations.

If the amounts of accounts receivable of one company fully correspond to the amounts of accounts payable of another company included in the group, then they are mutually eliminated.

In the preparation of subsequent consolidated income statements, adjustments are made in four main areas:

exclusion of interim results caused by intra-group sales;
depreciation of goodwill that arose during the creation of the group;
amortization of the deviation of the fair value of assets and liabilities from their carrying value included in these items on initial consolidation;
allocating a minority interest in the performance of a subsidiary.

When investing less than 100% in the capital of the acquired enterprise, the so-called minority share. This is the share of third-party shareholders, which in the consolidated financial statements should be reflected separately from the group's capital.

The minority interest in the net assets of the consolidated subsidiaries must be determined and presented separately in the consolidated balance sheet. The minority share in the profits (losses) of subsidiaries for the reporting period must be determined and presented separately in the Profit and Loss Statement. This ratio is used to adjust the financial result (profit or loss) of the group to determine the net income attributable to the parent company.

In this case, the minority share in the consolidated balance sheet is determined by calculation based on the amount of capital of the subsidiary as of the reporting date and the percentage of shares not owned by the parent company in their total number. The value of a subsidiary's capital is determined as the result of section III "Capital and reserves" of its balance sheet minus the items "Social Sphere Fund" and "Target financing and receipts".

In the consolidated balance sheet, the indicator of the minority share is reflected after the result of section III of the balance sheet. In the consolidated income statement, the minority share reflects the value of the financial result of the subsidiary's activities that does not belong to the parent organization; this share is calculated based on the amount of retained earnings or uncovered loss of the subsidiary for the reporting period and the percentage of voting shares not owned by the parent company in their total number.

In the consolidated income statement, the indicator of minority interest is shown as a separate item on the line to be entered; income and expenses are also allocated as a separate item. The income and expenses of the group in the consolidated report are given minus the corresponding income and expenses of the minority.

If the indicator of the minority share in the losses of a subsidiary is greater than the indicator of the minority share in the capital of this company, then the amount of the reserve capital (if it is insufficient - additional, then statutory) of the subsidiary, included in the consolidated financial statements, is reduced by the amount of the difference.

An explanatory note is attached to the consolidated balance sheet and income statement of the group’s activities, which contains a list of all subsidiaries with disclosure of a number of data (names of companies, places of state registration or business activities, the amount of authorized capital, the share of participation of the main (predominant) in these companies or in their authorized capital).

The note also provides a valuation at the reporting date of the impact of the acquisition or disposal of subsidiaries or affiliates on the group's financial position and on the group's financial performance for the reporting period.

data on the name of the dependent company,
its legal address,
the size of the authorized capital,
share of the parent organization in the total amount of the contribution, as well as a statement of intentions for further participation.

The explanatory note to the consolidated financial statements also contains explanations of those cases when the indicators of subsidiaries and affiliates are reflected in the consolidated financial statements directly as financial investments, to which the considered principles and rules of consolidation do not apply.

An example of drawing up one of the variants of the consolidated balance sheet is the scheme presented in table 9.2. It considers the case when the analyzed organization acquired 70% of the ordinary shares of the enterprise Beta LLC; investments of the parent company in the subsidiary amounted to 4,725 thousand rubles.

1. The book value of the equity of a subsidiary of Beta LLC is determined as of the date of acquisition of shares by the parent organization under analysis:

authorized capital + additional capital + reserve capital + retained earnings of previous years = 2915 + 940 + 1720 + 1025 = 6600 thousand rubles.

2. The book value of the share of the equity capital of the subsidiary "Beta" is calculated:

0.70 x 6600 thousand rubles = 4620 thousand rubles.

3. The value of the investment of the parent organization under analysis in the subsidiary and the book value of the acquired equity share of the subsidiary is compared; the monetary value of goodwill arising from consolidation is calculated:

4725 thousand rubles - 4620 thousand rubles. = 105 thousand rubles. This value is reflected in the asset of the consolidated balance sheet.

4. From the consolidated balance sheet of the group, indicators under the item “Investments in subsidiaries” in the amount of 4,725 thousand rubles are completely excluded.

At the same time, 4620 thousand rubles. are eliminated with the carrying value of the share of the subsidiary's equity purchased by the parent. Therefore, this part of the equity of the subsidiary Beta is not reflected in the consolidated balance sheet.

The remaining 105 thousand rubles. investments in a subsidiary are reflected in the article "Business reputation of the enterprise" of the consolidated balance sheet.

5. The minority share is determined, which includes two components:

30% of the book value of the subsidiary's equity, i.e. 0.30 x 6600 thousand rubles = 1980 thousand rubles;

30% of the profit received by the subsidiary after the sale of its shares to the parent organization being analyzed, i.е. "After-sales" profit (reporting period) = 0.30 x 1130 = 339 thousand rubles.

Thus, the minority share is 1980 thousand rubles. + 339 thousand rubles. = 2319 thousand rubles. This amount is reflected in the consolidated balance sheet as a separate liability line.

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Table 9.2

Table for compiling a consolidated balance sheet

(thousand roubles.)

Balance sheet items	Parent company		OOO "Beta" (subsidiary)		Subsidiary equity owned by		elimination		Consolidated balance
Balance sheet items	Assets	Passive	Assets	Passive	group (70%)	minority (30%)	Assets	Passive	Assets	Passive
1	2	3	4	5	6	7	8	9	10	11
1. Non-current assets:	129520		9830		-	-	105	4725	134730
1.1. Business reputation	0		0		-	-	105	-	105
1.2. fixed assets	97532		8400		-	-	-	-	105932
1.3. Investments in subsidiaries	4725		0		-	-	-	4725	-
1.4. Other noncurrent assets	27263		1430		-	-	-	-	28693
2. Current assets	193099		10555		-	-	-	-	203654
Balance	322619	-	20385	-	-	-	-	-	338384	-
3. Capital and reserves:		135078		7730	-	-	-	-		135869
3.1. Authorized capital		65004		2915	2040,5	874,5		2040,5		65004
3.2. Extra capital		23942		940	658	282		658		23942
3.3. Reserve capital		14081		1720	1204	516		1204		14081
3.4. Retained earnings of previous years		16476		1025	717,5	307,5		717,5		16476
3.5. Retained earnings of the reporting period		15575		1130	791	339				16366
4. Minority interest	-	-	-	-	-	-	-	-	-	2319
5. Other liabilities		187541		12655	-	-	-	-	-	200196
Balance	-	322619	-	20385	5411	2319	-	-	-	338384

6. Undistributed profit of the reporting year of the parent organization is determined: 0.70 x 1130 thousand rubles. = 791 thousand rubles.

In the consolidated balance sheet, the net profit of the reporting period is added to the net profit of the parent organization itself: 791 thousand rubles. + 15575 thousand rubles. = 16366 thousand rubles.

7. All other items in the balance sheets of both the parent organization being analyzed and Beta LLC are summarized.

As can be seen from Table 9.2, the consolidated balance sheet in its structure is practically no different from the original balance sheets of the parent organization and the subsidiary. And this means that the sequence and methodology of the analysis of the consolidated balance sheet is the same as the analysis of the ordinary balance sheet. A feature of the analysis of consolidated reporting is that an analytical stage is added, during which it is necessary to explain what type of consolidation of reporting was used, on what conditions the enterprises were merged into a group, and to characterize the economic relationship and interaction of group members. And, of course, a financial analysis is needed not only of the consolidated statements, but also of the original forms of financial statements of the parent organization and subsidiaries.

Summarizing all of the above, it can be argued that the consolidated financial statements have some features:

consolidated financial statements are not financial statements of a legally independent enterprise. Its purpose is to obtain a general idea of the performance of the corporate family. It has a clear informational and analytical focus;
the results of transactions between members of the corporate family are not included in the consolidated financial statements. It shows only assets and liabilities, income and expenses from transactions with external counterparties. Any intra-group financial and business transactions are identified and eliminated during the consolidation process. Consolidation is not a simple summation of items of the same name in the financial statements of group companies;
group reports contain summary information on the results of operations and financial position of each company included in the association. This means that the profits of one subsidiary may “hide” the losses of another, and the sound financial position of one subsidiary may “hide” the potential insolvency of another;
if the group consists of companies operating in various types business, the consolidated financial statements for that group may not disclose certain important details when there is no additional information about each segment of the group's activities.

The formulated features of consolidated reporting allow to fully reveal its role in the group's activities:

provide general information on the group as a whole in order to maintain a positive image of the group and strengthen its position in the stock market (increase in quotations of shares of the parent company and other companies of the group);
give a more realistic picture of the business operations and financial position of a single economic unit, but do not replace separate financial statements;
provide a basis for making managerial decisions;
characterize the economic relationship and interaction of group members;
perform a controlling function for the parent company, since these statements are prepared in the currency of the parent company;
influence the financing and financial planning of the group's activities, etc.

Chapter 9 Checklist

What are the reasons for the emergence of consolidated reporting.
What is the difference between the concepts of "consolidated reporting" and "consolidated reporting"?
Describe the main concepts of consolidated reporting: "parent company", "subsidiary", "consolidated financial reporting", "group (field) of consolidation", "minority share".
Name the criteria for inclusion in the consolidated reporting of a group of data of subsidiaries and affiliates.
Who can be attributed to the number of consumers of information consolidated reporting?
What are the principles of building consolidated reporting?
Name the procedure for compiling summary (consolidated) financial statements.
Describe the concepts of "primary consolidation" and "subsequent consolidation".
What is the difference between horizontal, vertical and conglomerate types of business combinations?
What is the purchase method when combining enterprises into a group and how does it differ from the merger method?
What is the essence of the concept of "elimination" in the preparation of consolidated financial statements? What items and calculations are subject to elimination?
What are the features of the consolidated financial statements of the organization?