Research On The Consolidated Statements Of GT Investment Companies

Combining financial statements is the focus of enterprise financial work. In this paper, the existing problems of combining financial statements for the current state-owned investment company will be revealed through the author’s analyzing.The author will put her own solutions to better solve the consolidation problems.First of all, the theory related to the combining financial statements are defined,including:Introduce the concept and difference between three merger theory;introduce their scope of application in the domestic and international introduce their defects.Detail the definition of "control" and clear how to judge control in various special cases.Introduce two combined method:purchaser method and equity combined method.Introduce their concept and present application, and analysis their influence to report,and encountered problems in practice.Secondly, the background of GT company will be introduced, including its establishment, investment and its company stock etc.Because GT company is the predecessor of the State-owned Assets Management, its consolidated financial statements is very complicated.This paper puts forward the relevant solutions. Scope:from the spirit of the accounting standards for enterprises, make related interpretation and judgment.Cross shareholding problems:the issues of the cross shareholding subsidiaries is complicated.This paper collect and analysis the dates which are enjoyed by the parent company’s.Through the way of mathematical deduction, make accurate judgments of the merger ration about GT company.The valued assets in the combining statement:GT company combined the former subsidiaries by fair value.The valued assets will be requisitioned by the government, corporation, impaired and used for financing leasing problem.A series of the valued assets dispose lead to the single report has a big difference from combining statements. This paper solve the series problems in practice and analysis the influence to the report.Mutual borrowing exist in GT company.The borrowing money is used in construction, real estate development and flow turnover and so on.Completed assets depreciate every year and real estate projects sale in late accounting year. They have a complex influence of combining statements,involve the current and future profit and loss rights of shareholder. This paper makes a detailed introduction and analysis about it.Long term equity investment offset:CAS for enterprises has a complex set of offsetting entry on the long-term equity investment. From the practical experience,this paper will design a simple and easy method to solve it.The purchase of a minority stake problem: through the analysis of the theory, the author make her own about understanding and solving the problem.Finally:Through the analysis of the practice problems, this paper put forward the prospect to make CAS perfectly. I hope this paper can provide valuable reference about how to make a combing financial statement accurate so that it can offer a more useful information to the users.