Company Accounts

Running head: COMPANY ACCOUNTS
COMPANY ACCOUNTS
Name of the Student
Name of the University
Author Note

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COMPANY ACCOUNTS
Memorandum
To: Board of Directors
From: Employee
Date – 3rd September, 2019
Subject – Details about Consolidation Statement.
Consolidation in the Company
Consolidation financial statement are the financial statement in which the asset, liability,
income and equity of the parent company and the subsidiary company (Armstrong et al.,
2015). Company had to prepare the financial statement properly by taking into consideration
the subsidiary company asset and liabilities.
AS per the FASB Statement No 94, the consolidated statements are prepared as:
 One company should prepare is holding 50% so it should able to prepare the
consolidated statement.
 Company should prepare if the majority of board is of the company
Company should prepare the financial statement even the subsidiary company is preparing
the financial statement as this will help them to gain the knowledge of subsidiary company
business activities. The subsidiary company is able to perform all the activities separately, so
the holding company can know the activities properly in the business. It help them to get a
detailed information as how the company is performing as a whole which include both
holding and subsidiary company.
Disclosure in Annual Report

2
COMPANY ACCOUNTS
Each company should able to the disclosure all the related activity in the company business
so that the user is able to know how the company able to perform the activities in the
business. Company should provide proper disclosure in the company as this will help the
company to give proper financial information in the business, it should follow all the rule and
norms in regards of the preparation of annual report (Static1.squarespace.com. 2019). The
director and the management should take into consideration all the factor which should be
informed to the shareholder and it should disclose all the matter to company shareholder
(Tricker and Tricker 2015). This will help the company to gain the confidence of the financial
user as it able to get all the information of company business. Harvey Norman is showing all
the related document which are required by the company to submit in their annual report. As
per the company annual report it can seen the that they have given proper disclosure in the
corporate governance, Sustainability and Audit Committee.
Corporate Governance
It shows how the company is able to perform the business with regards of the rules and
process in the business activity. It shows how the company is able to perform the activity in
the business (De Haan and Vlahu 2016). The company financial reports show that the
company is able to manage all the corporate governance properly in the business. It shows
how the company is able to carry its business activities properly in the business. It shows how
the company is able to make different strategies in the business so that it will to gain more
amount of business in the company. This shows all the initiative which the company has
taken for the environment and able to gain advantage in the company business as this will
increase the loyalty of customer in company business. The company is able have proper
board which able to carry its business activities in regards of Corporate Governance as it have
to maintain the compliance of relative framework in the business. It also include the key
evaluation program as this will help the company to train and educate their staff to carry its