Consolidation Process

A new employee has been given responsibility for preparing the
consolidated financial statements of Sample Company. After attempting to
work alone for some time, the employee seeks assistance in gaining a
better overall understanding of the way in which the consolidation
process works. You have been asked to assist in explaining the
consolidation process.

1. Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?
2. How is the beginning-of-period non-controlling interest balance determined?
3. How is the end-of-period non-controlling interest balance determined?
4. Which of the subsidiary’s account balances must always be eliminated?
5. Which of the parent company’s account balances must always be eliminated and why must they be eliminated?
6. How might this process under a GAAP basis compare to that under an IFRS basis?
7. Are there any ethical aspects that need to be addressed?

Reminder: Your initial posting should be 250-500
words and must be submitted by Thursday, 11:59 p.m. MST of this week.
Also, by 11:59 p.m. MST of Sunday of this week, respond to at least two
of your classmates or instructor, in any of the following ways: