Accounting

In a multi-company environment, transactions between the logistic companies and between financial companies create the need to balance the accounts through intercompany transactions. Intercompany transactions occur, for example, if the enterprise units of the sales office and the purchase office, work center, or warehouse involved in a logistic transaction are linked to different financial companies, or belong to different logistic companies. These types of intercompany transactions exist: Multi-finance intercompany transactions Intercompany transactions between the financial companies in a multi-finance company structure. Intercompany settlement transactions Settlement transactions between the logistic companies in a multi-logistic/single finance company structure. Intergroup transactions Financial transaction between financial groups in a multi-finance company structure with multiple financial groups. Multi-finance intercompany transact...

Meaning and definition of Consolidated Financial Statements Consolidated financial statements refer to the financial statements which lead to the subsidiaries of the holding company its summative accounting figure. Putting another way, consolidated financial statements can be addressed as the combined financial statements of a parent company and its subsidiaries. According to IAS 27 "Consolidated and separate financial statements", consolidated financial statements are the financial statements of a group presented as those of a single economic entity. As stated by Investopedia, the consolidated financial statements enable you to determine the general health of an entire group of companies as compared to a company’s stand alone position. This is because these financial statements provide an aggregated look at the financial position of a company and its subsidiaries. Purpose of consolidated financial statements The key purpose of preparing consolidated financial s...

There are some common types of costs incurred in an operating property are: Cleaning services; Security; Water; Electricity; Heating-ventilation-and-air-conditioning (HVAC); Payroll; Insurance; Repairs and maintenance; Leasing costs; Loan closing costs; Management fees; Property taxes; Sales and use taxes; Additional services bill-backs. 1. Cleaning Expenses Cleaning involves the cost of cleaning both inside and outside of the property. This service is either provided by the property owner’s personnel or outsourced to third-party cleaning companies. If it is performed by the owner’s personnel, this cost would be part of payroll expenses. Cleaning cost is a period cost and should be expensed during the applicable periods. Therefore, the journal entry to record this type of expense would be: [Debit] Cleaning expense = $xx [Credit]. Cash or Accounts Payable = $xx However, in an outsourced cleaning scenario, the parties might agree that the owner would pay in ad...