The Argument against Consolidation

Introduction to the Argument against Consolidation

There appears to be a compelling logic for consolidating the results of subsidiaries controlled through a parent company, to imitate the fact that the shareholders of the parent company efficiently control all of the assets of all of the companies in the group. Though, there is also a quite strong argument against doing so.

A person who is reading the consolidated financial statements of a group of companies could be mislead into believing that trading with any member of the group would, effectively, be similar like trading with the group like a whole. It may be supposed that all of the assets of group could be called upon to meet any amounts owed through any member of the group. Though, this would be not true. Only the assets owned through the specific group member would be accessible to any creditor of that group member.

The reason behind this is the legal separateness of the limited company from its shareholder(s) that in turn leads to limited liability of individual group members. There would be completely no legal obligation on a parent company, or a fellow subsidiary, to assemble the financial obligations of a struggling subsidiary. Actually this is a reason why some businesses operate by a series of subsidiaries.

Regardless of this criticism of consolidation, the need to prepare group financial statements is an extremely popular legal need throughout the world.

Latest technology based Financial Accounting Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in The Argument against Consolidation homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for The Argument against Consolidation, project ideas and tutorials. We provide email based The Argument against Consolidation homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in The Argument against Consolidation. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Financial Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the financial accounting assignments, which may help you to solve your complex issues of The Argument against Consolidation. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.

©TutorsGlobe All rights reserved 2022-2023.