Principal procedures on consolidation

Generally 1 mark per procedure explained:

– Test controls 
– Review group instructions
– Recalculate adjustments
– Reconcile inter-company balances
– Review fair values/consider need for expert
– Consider consistency of accounting policies
– Recalculate deferred tax implications
– Agreement to component financial statements
– Consider treatment of non-controlling interests
– Arithmetical accuracy of consolidation schedule

Maximum marks 8