Investee’s Net Profits Adjustment in Balance Sheet Consolidation: for the Reasons of Internal Tractions

DOI

10.2991/ichess-16.2016.21How to use a DOI?

Keywords

Consolidated balance sheet, Offset entries, Investee’s net profits adjustment, Unrealized intra-entity gross profits, False Impairment provision

Abstract

In accordance with China enterprise accounting standards, investee’s net revenues adjustment because of internal tractions must be done before the elimination of all intra-entity long-term equity investments in the balance sheet consolidation. The paper develops a universal model with the ability to calculate the adjusted investee’s net profits accurately without analyzing the offset entries of the internal tractions. The performance of the proposed model is benchmarked against the method of offset entries on internal tractions.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Peng Zhao
AU  - Ying Ru
PY  - 2016/08
DA  - 2016/08
TI  - Investee’s Net Profits Adjustment in Balance Sheet Consolidation: for the Reasons of Internal Tractions
BT  - Proceedings of the 2016 International Conference on Humanity, Education and Social Science
PB  - Atlantis Press
SP  - 95
EP  - 98
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichess-16.2016.21
DO  - 10.2991/ichess-16.2016.21
ID  - Zhao2016/08
ER  -