The equity method of consolidation is used when a parent has considerable influence over a subsidiary, typically assumed with ownership between 20% and 50%. The investment in the subsidiary is initially recorded at cost and is then adjusted to reflect the parent’s share of the subsidiary’s post-acquisition profits or losses. These adjustments affect both the…
The bookkeeper also ensures the categorization of all transactions so that they can be used to produce useful financial reports. These include single-entry bookkeeping, double-entry bookkeeping, computerized bookkeeping systems, and virtual bookkeepers. The process of documenting, saving, and retrieving financial transactions for a company is known as bookkeeping. It ensures that the financial information is…
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