Consolidated Financial Statements

Article Abstract:

The accountant is often faced with preparation of consolidated financial statements for the shareholders of parent companies. These statements are common in the United States, but rarely found in other parts of the world. Four theories for consolidation exist: 1) The Proprietary Theory , 2) The Parent Company Theory, 3) The Parent Company Extension Theory, and 4) The Entity Theory. Each recognizes different combinations of historical book value, excess value over book value allocated to specific, identifiable tangible and intangible assets, and good will for parent company and minority. The only theory which appears appropriate even with its shortcomings is the Parent Company Extension Theory which recognizes the minority interest's book value and identifiable tangible assets and intangible assets, but only recognizes the goodwill portion attributable to the parent company.

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Financial planning: the emergence of a profession

Article Abstract:

Personal financial planning has emerged as a recognized profession in the financial services industry. The process of financial planning is characterized by its comprehensive approach, its orientation to the client's needs, and its goal of providing an integrated, coordinated system for the client's financial resources. The International Association for Financial Planning (IAFP), founded in 1969, is the largest organization representing the diverse nature of the financial planning community. Professional certification and formal academic programs have been developed, and financial planning is becoming an integral part of accounting firms, securities firms, insurance companies, and services offered by independent professionals.

Management, Services, Financial planning, Growth, Financial planners, International Association for Financial Planning

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Prospective financial statements

Article Abstract:

The prospective financial statement is based on impending financial developments of the company. The organization's projected financial status represents a forecast while a projection represents a hypothetical situation that the organization does not necessarily expect in the future. Management accountants, public accountants, and professional associations help to generate the content of financial statements.

Planning, History, Financial statements, Disclosure statements (Accounting)

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