Bookkeeping

First, we need to understand the difference between sales and variable costs to see if a company is making money. For example, if a lemonade stand sells a cup of lemonade for $1 and it costs 50 cents to make it, the variable costs are the 50 cents. Gross revenue is the total money earned […]

Control is established when a parent company holds more than 50% of the voting rights in a subsidiary, granting it the ability to direct the subsidiary’s financial and operational policies. Control can also arise through contractual arrangements or potential voting rights. Practising full-length consolidation questions will help you to develop a better understanding of consolidation.