The numerous local aquifers can be grouped into several regional aquifer systems that contain groundwater-flow systems of local, intermediate, and regional scale. Water in topographically high recharge areas is unconfined, but, it becomes confined as it moves coastward. Discharge is by upward leakage to shallower aquifers or to saltwater bodies in coastal areas. Because consolidated vs unconsolidated flow is sluggish near the ends of regional flow paths, the aquifers commonly contain unflushed saline water in their deeply buried, downdip parts. Where shallow aquifers have been heavily pumped near the coasts, saltwater intrusion has locally contaminated the groundwater. During 1985, more than 30 million cubic meters per day was withdrawn from these aquifers.
Understanding the differences between these two types of financial statements is CRUICAL for making informed financial decisions. Depending upon the accounting software in use, it may be necessary to access the financial records of each subsidiary and flag them as closed. This prevents any additional transactions from being recorded in the accounting period being closed. If the parent company runs a consolidated payables operation, verify that all accounts payable recorded during the period have been appropriately charged to the various subsidiaries.
Unconsolidated sand and gravel aquifers include:
The difference between consolidated and unconsolidated financial statements lies therein, explains information from Legal Zoom. An unconsolidated financial statement would treate each subsidiary separately from an accounting perspective, while a consolidated one accounts for every subsidiary together. The initial step in preparing consolidated financial statements is to establish the relationships between the parent company and its subsidiaries.
Please note that some of the Consolidated Statute titles are listed as “Reserved” as the legislature has not yet consolidated that title. The Pennsylvania Constitution and court rules are also included in this multi-volume set. Purdon’s is annotated, meaning it includes additional references as well as lists relevant case citations.
Step 8. Eliminate Intercompany Transactions
The treatment of minority interests ensures that the consolidated statements present a fair view of the ownership structure of the group’s equity and comprehensive income. The consolidated financial statements consist of the income statement, Statement of Financial Position, Statement of Cash Flow, and Statement of Change in Equity. It provides information about income, expense, asset, liability and equity of the parent and subsidiary in a set single report. This happens if there is a parent company that doesn’t have much activity since all operations are happening at the subsidiaries level. In cases like this, there’s no point in preparing financial statements for the parent and each of the subsidiaries separately since presenting them on a consolidated basis reflects the financial reality better.
- Adjustments are required when subsidiaries use different accounting methods or policies, ensuring consistency across the consolidated group.
- In this case, the financial statements of the parent company and its subsidiaries are prepared separately, and the results are presented separately.
- If there have been any intercompany transactions, reverse them at the parent company level to eliminate their effects from the consolidated financial statements.
- When analyzing consolidated financial statements, it’s important to delve into the operational and financial synergies that the consolidation is intended to reflect.
- When a company prepares consolidated financial statements, this means that the structure of the company has more than one entity.
- This involves determining control, which typically arises when the parent owns more than half of the voting power of an entity.
For instance, if the parent owns more than 50 percent of the subsidiary, you must value the subsidiary’s accounts at their current market value. If ownership falls between 20 and 50 percent, report the value of the accounts less the amount of any declared dividends or operating losses posted by the subsidiary. While a parent company may not have managerial control of a subsidiary, it could have significant exposure to the financial and operational dealings of the subsidiary.
The Consolidation Procedure
Consolidated financial statements report a parent company’s financial health and include financial information from its subsidiaries. Consolidated financial statements are not designed to provide separate information about the assets, liabilities, equity, income and expenses of any particular subsidiary. All four types have intergranular porosity, and all contain water primarily under unconfined or water-table conditions. The hydraulic conductivity of the aquifers is variable, depending on the sorting of aquifer materials and the amount of silt and clay present, but generally it is high.
