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Consolidation accounting



Consolidation accounting

Consolidated (or consolidated) accounting is a standard way to present the financial results of a multinational company as a single report. Consolidated statements are used to check whether a company’s income statement, balance sheet, and statement of cash flows are correct. Consolidated statements are prepared by adding up individual company results and distributing the total to the affiliated companies.

The process of convergence is one of the key elements of consolidation, and should be seen as a positive step forward. The main aim of the strategy is to consolidate the businesses of the group in a way that minimises their own funding requirements and maximises the value of the group to its shareholders.

In the early years of my career, I went over to a small consulting firm, and they had a very standard list of accounting books that they would recommend to their clients: “accounting for bankers, corporate finance, international accounting, etc.”. I had to immediately think: “this is a really outdated practice, why are we recommending these books to our clients?”

Home Business Accounting

12. October 2020
Accounting Adam Hill

Special Purpose Vehicle (SPV)

A special purpose vehicle is a legally separate entity that assumes the risks of a company. A special purpose vehicle can also be created for the reverse situation, whereby the assets it holds are protected even in the event of the bankruptcy of an affiliate (which can be important in asset securitisation). This entity has separate assets and investors that are separate from the parent company. As long as certain accounting criteria are met, the parent company does not have to recognise the special purpose entity in its books. This allows an entity to remove unrelated activities and risks from the financial statements.

Limited liability companies are usually formed by owners who are leaving the business of buying and selling. The second truism states that not all organizations have the same moral standards (Crews 8). Enron’s risk management supported the idea that reported earnings were simply what the auditor recorded, rather than a sound and reliable strategy for continued growth. The company developed the philosophy that corporate and personal wealth could be achieved through cost cutting and false accounting (Stewart 119).

This created a system in which the company was dependent on money that never really belonged to it. Through the practice of risk tolerance, employees have become accustomed to not having to comply with the ethical standards of other organizations. All that mattered to them was a positive number on the balance sheet and nothing else that stood out from other companies. Moreover, the parent company can finance its activities through long-term debt, public funding or high-yield equity investors without jeopardizing its core business.

In addition, Enron did not consolidate the LJM and Raptor nuclear power plants in its financial statements, although subsequent information indicated that they should have been consolidated. Special purpose entity A special purpose entity is a legal entity established for a limited, specific and often temporary purpose.

Special purpose entities can be either accounting or non-accounting entities. A special purpose vehicle, also known as a special purpose entity (SPE), is a subsidiary set up by the parent company to isolate financial risks. The legal status of an independent company makes its obligations certain, even in the event of bankruptcy of the parent company.

The transfer of these assets to the SPE meant that their losses would not be reflected in Enron’s books. To compensate investors in the company for the downside risk, Enron promised to issue additional shares. As the assets of these partnerships declined, Enron began to make more and more commitments to issue its own shares in the future.

Through the use of shelter structures, such as. B. Through limited partnerships with third parties, a firm can increase its debt and returns without having to report debt on its balance sheet. The company contributes tangible assets and related liabilities to the SPE and receives in return a share in the capital. The SPE then borrows large sums of money from a financial institution to purchase assets or undertake other activities, without disclosing the debt or assets in the entity’s financial statements. The entity may also use borrowed funds to sell assets of the SPE and earn a profit. Variable interest entities (VIEs) are often established as special purpose vehicles (SPVs) for the passive ownership of financial assets or for active research and development.

ABC is a major industrial equipment manufacturer that uses SPVs to mitigate financial risk. Typically, a company transfers assets to an SPE to manage them or uses an SPE to finance a large project to achieve a specific purpose without exposing the entire company to risk. SPEs are also often used in complex financial transactions to distinguish between different levels of capital contribution.

Investments in startups are highly liquid, and investors who cannot hold their investments for long (at least 5-7 years) are better off not investing. U.S. banks often establish multiple-issue entities (MEEs) in the Cayman Islands or other tax-advantaged locations.

To mitigate the risk, Enron guaranteed the value of the SPV. When Enron’s share price fell, the value of the SPVs followed, and the guarantees were triggered.

A culture of risk management and asset ring-fencing prevailed, making accounting an easy scapegoat for companies that were not truly profitable. This reasoning soon led to the use of unconventional and illegal accounting methods, and then to the collapse when it was discovered that the accounts were false.

The problem was compounded by a sharp decline in Enron’s share price. The most controversial of these were LJM Cayman LP and LJM2 Co-Investment LP, both led by Fastow himself.

An SPV is a subsidiary company whose purpose is to facilitate the financial arrangements of the parent company, including leverage and speculative investments, without adversely affecting the group as a whole. SPVs are typically used for securitisation purposes and have the power to finance, buy and sell assets. A special purpose entity that is not included in the balance sheet shall include its assets, liabilities and equity in a balance sheet separate from that of the parent. If an asset allocation or joint venture involves more risk than the parent company wants, the SPV protects the parent company. There can be no assurance that these estimates and other conditions will be accurate or consistent with market or industry estimates.

What are special purpose associations and how do they operate?

A special purpose entity is simply a wholly owned subsidiary of a larger foundation or corporation with the purpose of owning a particular asset or exploring and/or operating a particular line of business. It may also provide for different tax regimes for different assets and activities.

In addition, investors may receive illiquid and/or restricted shares that may be subject to holding period requirements and/or liquidity issues. In the most prudent investment strategy for investing in startups, startups should only be a portion of your overall investment portfolio. In addition, the startup portion of your portfolio can include a balanced portfolio of different startups.

  • The transfer of these assets to the SPE meant that their losses would not be reflected in Enron’s books.
  • As the assets of these partnerships declined, Enron began to make more and more commitments to issue its own shares in the future.
  • To compensate investors in the company for the downside risk, Enron promised to issue additional shares.

Usually based and registered in tax havens, SPEs enable tax avoidance strategies that are not possible in the home country. They are also often used to hold a single asset and its associated licenses and contractual rights (such as a residential building or power plant) to facilitate the transfer of that asset. They form an integral part of the public-private partnerships used in Europe, which are based on a project-funding structure. Single purpose – Used for financial transactions, for example. For example, for the purchase of assets, for joint ventures, or to separate the assets or activities of a company from the parent company.

A Special Purpose Vehicle (SPV) is a legal entity that implements a project. All contractual agreements between the various parties are concluded between them and the host structure. An SPV is a commercial company established under the applicable law of a country on the basis of an agreement (also called a partnership agreement) between the shareholders or sponsors. A special purpose vehicle (SPV) is a subsidiary company established solely for the purpose of isolating financial risks from the parent company.

Enron scandal: The Wall Street Case Favorite

Special purpose vehicles are used for a variety of legitimate purposes, including structured risk management solutions. In securitisation, the SPE assumes the risk of the assets either by purchasing the assets or in synthetic form. The assets are then used as collateral for promissory notes issued by the SPE. Enron’s stock skyrocketed and the company transferred most of its shares to the SPV in exchange for cash or a promissory note. The SPV then used the shares to cover the assets on the company’s balance sheet.

The role of the SPV is to acquire these assets from a company or bank and to use them as collateral for the securities it issues to finance the acquisition of the assets. The Enron disaster is an example of how a special purpose vehicle should not be used. Enron used special companies to remove growing stock from the parent company’s balance sheet. The SPV used the shares as collateral to acquire assets on the parent’s balance sheet.

For example, a company may establish a VIE to finance a project without putting the entire company at risk. However, like other SPVs in the past, these structures are often used to keep securitized assets off company balance sheets. SPEs are typically used by companies to protect them against financial risks. The formal definition is as follows: A special purpose association is a closed organisation with limited and predetermined objectives and a legal personality.

Special purpose entities have many legitimate purposes, but they can be misused to make the business seem less risky and more profitable than it really is. Enron used special purpose vehicles (SPVs) or special purpose entities (SPEs) to hide mountains of toxic debt and assets from investors and creditors.

What is a qualified special purpose entity?

These are qualified special purpose entities (QSPEs) as defined by the Financial Accounting Standards Board (FASB). By definition, these are off-balance sheet companies and not bankrupt. They hold regular meetings on SPEs, sales criteria, transfer of financial instruments and changes in the definition of a QSPE.

III. Location of special purpose vehicle

The creation of a Special Purpose Vehicle (SPV) is an essential feature of most PPPs. SPVs are also the vehicle of choice to execute PPP projects in a limited or non-recourse financing environment, where lenders rely on project cash flow and asset security as the only means to repay debt. However, the actual structure of PPPs depends on the type of partnership. Enron Corporation, an energy company based in Houston, Texas, was embroiled in one of the most insidious economic scandals of the 20th century. I have been involved in this field since the late 19th century.

Most common interests in special purpose entities

Moreover, the Bank is not obliged to repurchase the transferred assets. Special Purpose Entity (SPE) is a general term used interchangeably with Special Purpose Vehicle (SPV).

It mitigated its risk by demonstrating the value of the SPV, but it did not protect itself when the share price fell and the lenders wanted their money back. All information was hidden from the public and it was too late and too much money was lost for the company to save itself. A special purpose vehicle (SPV) is a subsidiary of a company that is protected against the financial risk of the parent company. It is a legal entity created for the limited purpose of acquiring a business or transaction, or it may be used as a financing structure. Enron, like many other companies, used special purpose entities (SPEs) to access capital or hedge risks.

These are qualified special purpose entities (QSPEs) as defined by the Financial Accounting Standards Board (FASB). By definition, these are off-balance sheet companies and not bankrupt. The assets are unlikely to be available to the creditors of the transferring bank after the actual sale.

Between 1999 and July 2001, these companies paid Fastow more than $30 million in management fees, far in excess of his salary at Enron, allegedly with the approval of Enron’s management and board of directors. The LJM partnerships in turn invested in another SPE group known as the Raptor vehicle, which had been created in part to cover Enron’s investment in bankrupt broadband company Rhythm NetConnections. Enron issued common stock in exchange for $1.2 billion in claims related to the capitalization of the Raptor business. Enron increased notes receivable and equity to reflect this transaction, which appears to violate generally accepted accounting principles.”Consolidation accounting” is the practice of calculating the ending balance of one accounting period when the opening balance of a second accounting period is known. One example of consolidation accounting is when a company sold a product on one accounting day. At the end of the first accounting period, the sales amount is $100,000. In the first accounting day of the second accounting period, the sales amount is $110,000. And the closing balance of the first and second accounting periods is $110,000.. Read more about consolidation elimination entries and let us know what you think.{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”What are the rules of consolidation?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” The rules of consolidation are the same as those for a single-member LLC.”}},{“@type”:”Question”,”name”:”Why do we do consolidation in accounting?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” Consolidation is the process of combining two or more companies into one company.”}},{“@type”:”Question”,”name”:”What is consolidation example?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” A consolidation example is a company that has been in business for many years and has grown to the point where it needs to merge with another company.”}}]}

Frequently Asked Questions

What are the rules of consolidation?

The rules of consolidation are the same as those for a single-member LLC.

Why do we do consolidation in accounting?

Consolidation is the process of combining two or more companies into one company.

What is consolidation example?

A consolidation example is a company that has been in business for many years and has grown to the point where it needs to merge with another company.

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Enchanted Woods and Forest Slots: Exploring the Mystical Realm of Nature




In the realm of online casino gaming, a genre taps into the enchanting allure of nature and woodland mysteries: Forest Slots and Enchanted Woods Slots. These slots transport players into the heart of lush forests, where mythical creatures, ancient trees, and hidden treasures await discovery – play it here.

In this article, we will delve into the captivating world of Forest Slots and Enchanted Woods Slots, exploring their captivating features, woodland themes, and their magical gaming experience.

Immersed in the Wonder of Nature with Forest Slots

Forest Slots and Enchanted Woods Slots represent a captivating subgenre within online slot games, drawing inspiration from forests’ lush beauty and mystical aura. They offer a fusion of natural aesthetics, woodland creatures, and the potential for substantial real-money rewards. These slots appeal to fans of nature and wildlife and players seeking an escape into a world of tranquility and enchantment.

Key Features of Forest Slots and Enchanted Woods Slots

Lush Woodland Aesthetics

The standout feature of Forest Slots and Enchanted Woods Slots is their ability to recreate the serene and mystical ambiance of the forest. These games often boast towering trees, moss-covered stones, and enchanting glades—the graphics and animations transport players to a world of natural wonders, creating an immersive gaming experience.

Iconic Forest Symbols

Forest Slots and Enchanted Woods Slots feature symbols emblematic of the woodland realm. Players can expect to encounter woodland creatures like deer and owls, ancient trees, magical toadstools, and the elusive fairies and sprites that inhabit these enchanted woods. These symbols add to the game’s visual allure and play a critical role in determining winning combinations and triggering bonus features.

Woodland Creatures and Mystical Beings

To enhance the forest experience, these slots often incorporate encounters with mythical creatures and mystical woodland beings. Players may interact with fairies, elves, unicorns, and other fantastical inhabitants of the enchanted woods. These interactions add an extra layer of enchantment and engagement to the gameplay, providing players with a sense of wonder and magic.


Forest Magic Bonus Rounds

In Forest Slots and Enchanted Woods Slots, players often engage in bonus rounds that tap into the mystical energies of the forest. These may involve participating in magical ceremonies, uncovering hidden pathways, or seeking the blessings of ancient forest guardians. These bonus rounds immerse players in the enchanting world of the forest, intensifying the gaming experience.

Themes in Forest Slots and Enchanted Woods Slots

These slots come in a variety of themes, each offering a different woodland adventure:

Fairy Glades

These slots focus on the magical realms inhabited by fairies and sprites, where players can explore glades, seek hidden treasures, and receive the blessings of forest spirits.

Mystical Creatures

In these games, players encounter mythical creatures like unicorns, centaurs, and magical creatures as they explore the forest’s depths in search of hidden wonders.

Ancient Trees and Guardians

These slots revolve around the wisdom and magic of ancient trees, where players seek out the guidance and blessings of these wise woodland sentinels.

Woodland Treasures

In these games, players embark on quests to discover hidden treasures and uncover the riches that lie within the heart of the enchanted woods.

Winning Real Money in Forest Slots and Enchanted Woods Slots

While the immersive themes and woodland aesthetics are the main attractions, players can also win real money while enjoying Forest Slots and Enchanted Woods Slots. These games offer various opportunities to form winning combinations, trigger bonus rounds, and accumulate substantial payouts, much like traditional slots.



Forest Slots and Enchanted Woods Slots offer a uniquely immersive experience within online casino gaming. Whether you’re a fan of magical glades, encounters with mystical creatures, seeking the wisdom of ancient trees, or embarking on quests for woodland treasures, there’s a Forest Slot or Enchanted Woods Slot that can transport you to the heart of nature’s mysteries. With enchanting visuals, iconic woodland symbols, and engaging gameplay, these slots provide a truly unforgettable gaming experience. So, step into the enchanted woods and let the magic of nature guide you on a journey of wonder and discovery!

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Acquiring Sweeps Coins in Sweeptastic for 2023





Sweeptastic is a newly launched sweepstakes casino that is currently in the early stages of establishing itself in the industry. Although there are areas, such as its game library and user interface, that are still undergoing refinement, the casino shows potential, particularly with its attractive welcome offer and continuous promotions. Despite a somewhat limited range of games, Sweptastic offers a decent entry point for players looking to explore the world of sweepstakes casinos.

Legitimacy of Sweeptastic Casino

Assessing the legitimacy of an online gaming site involves subjective judgment, but there are signs and factors that can help determine the intention behind a platform.

One important consideration is the transparency of the owner company, and in the case of Sweeptastic, this information is readily available on the casino’s site – Heuston Gaming Limited with registration number 104624.

Additionally, Sweeptastic has taken steps to enhance transparency and player safety. They provide a page displaying the Return to Player (RTP) of all available games and have a Responsible Gaming page that discusses how players can have the best gaming experience while maintaining control over their habits.

With these measures, including comprehensive information and tools for self-control, Sweeptastic demonstrates a commitment to ensuring the safety and well-being of its players.


Sweptastic has a straightforward system with two virtual currencies: Gold Coins and Sweepstakes Coins, also known as Lucky Coins.

Lucky Coins (Gold Coins)

In Sweptastic, Gold Coins go by the name Lucky Coins. These coins are exclusively for playing games for fun and hold no real-world value. While the casino generously provides them for free, you also have the option to purchase additional Lucky Coins. They serve as a useful tool for exploring games before committing your valuable Sweepstakes Coins.

Sweepstakes Coins

Critical to the sweepstakes casino experience, Sweepstakes Coins are the virtual currency that transforms your in-game winnings into real money. Sweptastic retains the original name, emphasizing that winnings in Sweepstakes Coins can be redeemed for actual cash. Notably, these coins cannot be bought; however, Sweeptastic offers them abundantly through various promotions or as a bonus when you purchase Lucky Coins.

Promotional Offers at Sweeptastic

Promotions at Sweeptastic are designed to set high standards, offering players ample opportunities to enjoy their favorite games and potentially win real money rewards without the need for any purchases. Let’s delve into the details of each promotional offer:

Signup Bonus

Sweeptastic stands out by providing one of the most generous free welcome bonuses in the sweepstakes casino realm – a whopping 27,777 Gold Coins + 10 Sweepstakes Coins.


At the same time, the full offer requires account verification; merely registering grants you an initial reward of 10,000 Lucky Coins (Gold Coins).

Daily Login

Acknowledging active members, Sweeptastic adopts the common practice of a Daily Login Bonus but distinguishes itself with a substantial amount of freebies. Simply log in each day, and the casino automatically boosts your balance with 1,000 Lucky Coins.

Happy Hours

For early birds, Sweeptastic introduces Happy Hours, generously gifting 3,000 Lucky Coins every morning between 7 am and 10 am. This bonus is seamlessly added to your account upon login, requiring no additional steps or claims.

First Purchase Offer

While Sweeptastic lavishes players with substantial free coins, the extensive gaming catalog may lead to their quick depletion. In anticipation of this, the social casino presents two exclusive offers for your initial coin purchase:

  • $17.49 pack – 25,000 LC + 25 SC (30% off)
  • $29.49 pack – 45,000 LC + 45 SC (35% off)

Purchase Methods

Now that you’re acquainted with Sweeptastic’s virtual coins let’s explore the options available if you decide to make a purchase on this casino-style gaming platform. Sweeptastic offers six predefined Lucky Coin bundles, each accompanied by complimentary Sweepstakes Coins. You can make purchases using widely accepted bank cards like Visa, Mastercard, and American Express, among others. Additionally, popular online payment providers are supported, ensuring a seamless transaction experience based on our testing.

Redeeming Prizes

For many players, the most exciting aspect is whether Sweptastic truly pays out real cash prizes. The answer is a resounding yes, and the redemption process is notably faster compared to other sweepstakes casinos. You have various redemption options, including bank transfers, gift cards, and even merchandise if you prefer tangible rewards.


It’s crucial to note that to complete the redemption process; you must verify your account through KYC (providing documents for identity, address, phone, and bank account verification), wager the Sweepstakes Coins at least once (as they are received as a bonus), and have a Sweepstakes Coins balance equivalent to at least $100.


Since its inception, Sweeptastic has set the standard for how things should be done in the sweepstakes casino world. Whether it’s bonuses, games, or player care, this social casino brand truly stands out.

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Enhancing User Engagement And App Discovery: The Impact of User-Friendly Interfaces in App Catalogs




Mobile applications have become an integral part of our daily lives. From social networking to productivity tools, there is an app for everything. With millions of apps available across various platforms, app catalogs are crucial in helping users discover new applications. However, the success of these catalogs greatly depends on user experience, particularly the user-friendliness of their interfaces.

The Significance of User-Friendly Interfaces

User-friendly interfaces are essential elements of app catalogs as they directly influence how users interact with and explore the available apps. A well-designed and intuitive interface can significantly enhance the overall user experience. Here are some key factors that highlight the significance of user-friendly interfaces:

1.1 Navigational Ease

One of the primary benefits of a user-friendly interface is navigational ease. When users can easily browse through app categories, search for specific apps, and access relevant information, they are more likely to engage with the catalog for longer periods.

1.2 Visual Appeal

The visual appeal of an app catalog matters. An attractive and well-organized layout can captivate users and encourage them to explore further. A cluttered or confusing interface, on the other hand, can deter users from using the catalog.

1.3 User Feedback

User-friendly interfaces often include features for user feedback, such as ratings and reviews. This feedback helps users make informed decisions about which apps to download, enhancing their overall experience.

Comprehensive App Collection

APPiX360’s extensive app collection caters to a wide array of interests and needs. The platform regularly updates its offerings with the latest and most popular apps, ensuring users have access to the newest trends and tools. The importance of user reviews and ratings in aiding informed decisions is a testament to the platform’s user-centric approach. The platform’s commitment to ensuring safe downloads is exemplified through its stringent vetting process, which can be illustrated through the safe downloading of the Pin-up app.

Impact on User Engagement

User engagement is a crucial metric for app catalogs. It measures how actively users interact with the catalog, and user-friendly interfaces can have a profound impact on engagement levels:

2.1 Longer Time Spent

A user-friendly interface encourages users to explore more apps, leading to longer sessions within the catalog. When users find it easy to navigate, they are likely to spend more time searching for new apps and discovering content.

2.2 Higher Retention Rates

Apps with user-friendly interfaces tend to have higher retention rates. Users are more likely to return to the catalog regularly if they had a positive experience during their previous visits. This consistent engagement benefits both users and app developers.

2.3 Increased App Downloads

Improved user engagement often leads to an increase in app downloads. When users feel comfortable and confident while using the catalog, they are more likely to take the next step and download apps that pique their interest.


Impact on App Discovery

App discovery is a critical aspect of app catalogs, as it directly affects an app’s success. User-friendly interfaces play a significant role in enhancing the app discovery process:

3.1 Effective Search and Filtering

User-friendly catalogs offer efficient search and filtering options. Users can easily narrow down their choices based on categories, keywords, or ratings. This simplifies the app discovery process and helps users find relevant apps more quickly.

3.2 Personalized Recommendations

Many app catalogs use user data to provide personalized app recommendations. A user-friendly interface makes it easier for catalogs to collect and analyze user preferences, leading to more accurate and appealing app suggestions.

3.3 Social Integration

User-friendly interfaces often incorporate social features, such as sharing and following. These features enable users to discover apps recommended by their friends or influencers, fostering a sense of community within the catalog.


The Pin-Up App Download Experience

As we explore the impact of user-friendly interfaces, let’s take a closer look at the Pin-Up app download experience as an example. Pin-Up is an online casino and sports betting platform that offers a mobile app for users to enjoy their favorite games and place bets conveniently.

4.1 Navigational Simplicity

The Pin-Up app catalog boasts a user-friendly interface that simplifies the navigation process. Users can easily access different sections of the app, such as casino games, sports betting, and promotions, through a well-organized menu.

4.2 Visual Appeal

The catalog’s visual design is visually appealing, featuring vibrant colors and clear graphics. This visually engaging interface captures users’ attention and encourages them to explore the app further.

4.3 User Feedback

Pin-Up’s user-friendly interface incorporates user feedback in the form of reviews and ratings for games and sports events. This feedback helps users make informed decisions about what to play or bet on, enhancing their overall experience.


In conclusion, user-friendly interfaces are instrumental in shaping the success of app catalogs by positively impacting user engagement and app discovery. Navigational ease, visual appeal, and user feedback are key elements that contribute to a user-friendly experience. As demonstrated by the Pin-Up app download experience, a well-designed interface can enhance the overall user journey, leading to higher user engagement, increased app downloads, and improved app discovery. App catalogs that prioritize user-friendliness are more likely to thrive in the competitive digital landscape, benefiting both users and developers alike.

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