- Joined
- Jun 5, 2015
- Messages
- 1
- Reaction score
- 0
- Country
Hello all,
Last year (2013) our firm (US based C Corp) opened a Ltd in the UK as a wholly owned subsidiary. Both firms use QuickBooks to maintain their accounts in their functional currency and the group consolidation occurs offline in excel; we do not record the consolidating entries into the parent firm's QB file.
As this is the second year I am in the process of translating the UK accounts into our reporting currency and consolidating the accounts, however, I am having trouble figuring out how to account for the AOCI balance as last year's close in our statements this year. Since both trials balances (parent/subsidiary) are particular to the individual firms neither TB has the AOCI balance from 2013 for the group accounts. How do I incorporate last year's ending AOCI into this year statements?
NOTE: Last year I setup a workbook which had the parent's trial balance in two columns (Debits/Credits), then the subsidiaries translated TB (D/C), then eliminating adjustments (D/C), and finally consolidated accounts (D/C). Following such, there had been a CTA on the subsidiary TB to balance the P&L accounts recorded at the 2013 average exchange and the BS accounts at the year-end; also a CTA at the group level following the consolidation due to the loans to subsidiaries and due from subsidiaries and from the P&L eliminations. If I do the same thing this year then we would not be accounting for the previous year's AOCI balance as it is not recorded in the G/L for either company but only calculated offline so not factored into either TBs.
Currently, I have the previous years (PY) CTA in the consolidated statement of stockholders' equity with the beginning year's balance for retained earnings and AOCI (retained earnings before AOCI + AOCI = total retained earnings) but the PY AOCI it is not factored into the current year's BS, so I am concerned that I am missing something and not calculating the total correct AOCI on the BS, or calculating the total AOCI right at all for that matter.
Any help anyone can offer would be much appreciated.
Thanks,
Last year (2013) our firm (US based C Corp) opened a Ltd in the UK as a wholly owned subsidiary. Both firms use QuickBooks to maintain their accounts in their functional currency and the group consolidation occurs offline in excel; we do not record the consolidating entries into the parent firm's QB file.
As this is the second year I am in the process of translating the UK accounts into our reporting currency and consolidating the accounts, however, I am having trouble figuring out how to account for the AOCI balance as last year's close in our statements this year. Since both trials balances (parent/subsidiary) are particular to the individual firms neither TB has the AOCI balance from 2013 for the group accounts. How do I incorporate last year's ending AOCI into this year statements?
NOTE: Last year I setup a workbook which had the parent's trial balance in two columns (Debits/Credits), then the subsidiaries translated TB (D/C), then eliminating adjustments (D/C), and finally consolidated accounts (D/C). Following such, there had been a CTA on the subsidiary TB to balance the P&L accounts recorded at the 2013 average exchange and the BS accounts at the year-end; also a CTA at the group level following the consolidation due to the loans to subsidiaries and due from subsidiaries and from the P&L eliminations. If I do the same thing this year then we would not be accounting for the previous year's AOCI balance as it is not recorded in the G/L for either company but only calculated offline so not factored into either TBs.
Currently, I have the previous years (PY) CTA in the consolidated statement of stockholders' equity with the beginning year's balance for retained earnings and AOCI (retained earnings before AOCI + AOCI = total retained earnings) but the PY AOCI it is not factored into the current year's BS, so I am concerned that I am missing something and not calculating the total correct AOCI on the BS, or calculating the total AOCI right at all for that matter.
Any help anyone can offer would be much appreciated.
Thanks,