What is Consolidation Worksheet?
A consolidation worksheet is the working paper used to combine the financial statements of a parent and its subsidiaries into consolidated financial statements. It lists each entity’s trial balance, adjustments and eliminations, and a final consolidated column.
How It Works
- Stack the trial balances of parent and subsidiaries side by side.
- Eliminate intercompany balances and transactions.
- Eliminate the parent’s investment against the subsidiaries’ equity at acquisition.
- Recognize goodwill and non-controlling interest where applicable.
Saudi Context
Saudi groups with multiple subsidiaries use detailed consolidation worksheets, often automated in software like Qoyod, to support IFRS 10 consolidated reporting on Tadawul.
Example
If parent revenue is SAR 100 million and subsidiary revenue is SAR 40 million with SAR 5 million of intercompany sales, the worksheet eliminates SAR 5 million and reports consolidated revenue of SAR 135 million.