The Scenario
A holding company owns 100% of Subsidiary A and 80% of Subsidiary B. All three entities have submitted their individual income statements. The CFO needs a consolidated view that eliminates inter-company transactions.
The Brief
Prepare a simplified consolidated income statement. Identify and eliminate inter-company revenue (Subsidiary A sells to Parent), calculate minority interest for Subsidiary B, and present the group result.
Deliverables
- Individual income statements for all 3 entities (invented but internally consistent)
- A consolidation worksheet showing: line-by-line addition, inter-company eliminations, and minority interest
- The final consolidated income statement with a note explaining the minority interest calculation
Submission Guidance
Inter-company transactions inflate group revenue if not eliminated. Subsidiary A selling R500K to Parent means group revenue is overstated by R500K. Show the elimination.
Submit Your Work
Your submission is graded against the rubric on the right. If you pass, you get a public Badge URL you can share on LinkedIn. There is no draft save, so work offline first and paste your finished response here.