What is the difference between compaction and consolidation?
Compaction is the compression of soil by the expulsion of air from the voids of the soil. Consolidation is the compression of soil by the expulsion of water from voids of the soil. It is a quick process. It is a slow process.
How do you calculate consolidation?
The primary consolidation settlement can be calculated from the coefficient of volume compressibility mv, which can further lead to the Young’s modulus E = (1 + v)(1 2v)/[mv(1 v)], with an assumed Poisson’s ratio v.
What is the purpose of consolidation test?
Consolidation test is used to determine the rate and magnitude of soil consolidation when the soil is restrained laterally and loaded axially. The Consolidation test is also referred to as Standard Oedometer test or One-dimensional compression test.
What are eliminating journal entries?
Elimination entries allow the presentation of all account balances as if the parent and its subsidiaries were a single economic enterprise. Elimination entries appear only on a consolidated statement work sheet, not in the accounting records of the parent or subsidiaries.
What is the purpose of eliminating Workpaper entries?
Eliminating entries are used in the consolidation workpaper to adjust the totals of the individual account balances of the separate consolidating companies to reflect the amounts that would appear if all the legally separate companies were actually a single company.
What is intercompany journal entry?
An intercompany journal entry is an entry from one company with at least one transaction line to a different company. The system creates intercompany payable and receivable detail lines to keep each company in balance.
Who needs to prepare consolidated accounts?
A parent company presents consolidated accounts in which it consolidates all its investments in subsidiaries. A parent company need only prepare consolidated accounts if it is a parent at the period end.
When should you consolidate accounts?
Consolidated financial statements are used when the parent company holds a majority stake by controlling more than 50% of the subsidiary business. Parent companies that hold more than 20% qualify to use consolidated accounting. If a parent company holds less than a 20% stake, it must use equity method accounting.
How do you consolidate accounts?
The following steps document the consolidation accounting process flow:Record intercompany loans. Charge corporate overhead. Charge payables. Charge payroll expenses. Complete adjusting entries. Investigate asset, liability, and equity account balances. Review subsidiary financial statements.
Is it mandatory to prepare consolidated financial statements?
The 2013 Act mandates preparation of consolidated financial statements (CFS) by all Companies, including unlisted Companies, having one or more subsidiaries, joint ventures or associates. Previously, the Securities and Exchange Board of India (SEBI) required only listed Companies to prepare CFS.
How do you prepare a consolidated financial statement?
In preparing consolidated financial statements, the financial.statements of the parent and its subsidiaries should be combined on a line.by line basis by adding together like items of assets, liabilities, income.and expenses. financial information about the group as that of a single enterprise, the.
What is included in consolidated financial statements?
In general, the consolidation of financial statements requires a company to integrate and combine all of its financial accounting functions together in order to create consolidated financial statements that shows results in standard balance sheet, income statement, and cash flow statement reporting.
How do you prepare a consolidated cash flow statement?
The consolidated statement of cash flows is not prepared from the individual cash flow statements of the separate companies. Instead, the income statements and balance sheets are first brought together on the worksheet. The cash flows statement is then based on the resulting consolidated figures.
What are the steps to prepare a cash flow statement?
The four steps required to prepare the statement of cash flows are as follows:Prepare the operating activities section by converting net income from an accrual basis to a cash basis. Prepare the investing activities section by presenting cash activity for noncurrent assets.
How do you do an indirect cash flow statement?
Prepare the Operating Activities Section of the Statement of Cash Flows Using the Indirect MethodBegin with net income from the income statement.Add back noncash expenses, such as depreciation, amortization, and depletion.Reverse the effect of gains and/or losses from investing activities.