will the proportionate goodwill be de-recognized and charged to P&L? 1. If they are a partial owner, they will pick up the activity from the Schedule K-1 received on the Other income line of the form 1040 (page 1, line 8).If the LLC is owned by a corporation, it will include its share of profit or loss in the owners tax return. Those are the only entries. On 31 December 20X6 Mommy sold full 80%-share for CU 180 000. If parent loss control of the subsidiary without selling one piece of shares (in which subsidiary issued new shares to third party and cause a dilution of parents shareholding, do we still need to calculate any gain/loss on deemed disposal when de-consolidation? The Ultimate Guide to Small Business Taxes in California. is pooling of interest method applicable? Thanks! Before we actually prepare this statement, we need to make two more calculations: Lets start with Groups retained earnings at the beginning of the reporting period (1 January 20X6). As for it is about separate financial statements , it is correct to record gain of CU 10. This type of parent-subsidiary relationship typically comes about as the result of acquisitions or heavy investment by a large corporation in another company. Does the gain on bargain purchase have any impact on the consolidated profit / loss on disposal of subsidiary? o Subsidiary ledgers. Numbers in the last column were calculated as sum of Combine column and Group profit on disposal column. Partnerships dissolve. The subsidiary usually owned by the parent or holding company from 50% up to 100%. Add: NCI X is it same figure? (Another way of saying this is 3/6:2/6:1/6.). The consolidated method is the process of eliminating entries that would double the overall value of the subsidiary. Here, you calculate groups gain in the consolidated financial statements after you take non-controlling interest and goodwill into account. Of course recessions are a big deal for small businessesand everyone else, for that matterbut with a little preparation, we know youve got what it takes to weather yet another storm. A subsidiary is a company that is controlled by another company that owns 50% or more of its voting stock. All you need to do to stay informed is keep reading! Would you mind please send examples of the following or where i can get examples of these: You can do it if you like, but then do not forget to reverse entry in the individual FS. Closing Entries in Accounting are the different entries made at the end of any accounting year to nullify the balances of all the temporary accounts created during the accounting period and transfer their balance into the respective permanent account. Dec 12, 2022 OpenStax. Completing an entity diagramming process is an essential step when closing entities and is, in fact, a good practice to undertake on a regular basis ' before issues arise that necessitate closing subsidiaries. The CJE should be: Debit Profit on the sale of subsidiary 60,240 and Credit Beginning retained profits 60,240. Subsidiary needs to remove its equity of the parents investment. Great explanation thnx. Want to cite, share, or modify this book? What is a Closing Entry? are licensed under a, Discuss and Record Entries for the Dissolution of a Partnership, Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting, Identify Users of Accounting Information and How They Apply Information, Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities, Explain Why Accounting Is Important to Business Stakeholders, Describe the Varied Career Paths Open to Individuals with an Accounting Education, Describe the Income Statement, Statement of Owners Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate, Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses, Prepare an Income Statement, Statement of Owners Equity, and Balance Sheet, Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements, Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions, Define and Describe the Initial Steps in the Accounting Cycle, Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business Transactions on Financial Statements, Use Journal Entries to Record Transactions and Post to T-Accounts, Explain the Concepts and Guidelines Affecting Adjusting Entries, Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries, Record and Post the Common Types of Adjusting Entries, Use the Ledger Balances to Prepare an Adjusted Trial Balance, Prepare Financial Statements Using the Adjusted Trial Balance, Describe and Prepare Closing Entries for a Business, Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity, Appendix: Complete a Comprehensive Accounting Cycle for a Business, Compare and Contrast Merchandising versus Service Activities and Transactions, Compare and Contrast Perpetual versus Periodic Inventory Systems, Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System, Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System, Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods, Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies, Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System, Define and Describe the Components of an Accounting Information System, Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders, Analyze and Journalize Transactions Using Special Journals, Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems, Analyze Fraud in the Accounting Workplace, Define and Explain Internal Controls and Their Purpose within an Organization, Describe Internal Controls within an Organization, Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries, Discuss Management Responsibilities for Maintaining Internal Controls within an Organization, Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries, Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements, Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions, Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches, Determine the Efficiency of Receivables Management Using Financial Ratios, Discuss the Role of Accounting for Receivables in Earnings Management, Apply Revenue Recognition Principles to Long-Term Projects, Explain How Notes Receivable and Accounts Receivable Differ, Appendix: Comprehensive Example of Bad Debt Estimation, Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions, Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method, Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method, Explain and Demonstrate the Impact of Inventory Valuation Errors on the Income Statement and Balance Sheet, Examine the Efficiency of Inventory Management Using Financial Ratios, Distinguish between Tangible and Intangible Assets, Analyze and Classify Capitalized Costs versus Expenses, Explain and Apply Depreciation Methods to Allocate Capitalized Costs, Describe Accounting for Intangible Assets and Record Related Transactions, Describe Some Special Issues in Accounting for Long-Term Assets, Identify and Describe Current Liabilities, Analyze, Journalize, and Report Current Liabilities, Define and Apply Accounting Treatment for Contingent Liabilities, Prepare Journal Entries to Record Short-Term Notes Payable, Record Transactions Incurred in Preparing Payroll, Explain the Pricing of Long-Term Liabilities, Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method, Prepare Journal Entries to Reflect the Life Cycle of Bonds, Appendix: Special Topics Related to Long-Term Liabilities, Explain the Process of Securing Equity Financing through the Issuance of Stock, Analyze and Record Transactions for the Issuance and Repurchase of Stock, Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits, Compare and Contrast Owners Equity versus Retained Earnings, Discuss the Applicability of Earnings per Share as a Method to Measure Performance, Describe the Advantages and Disadvantages of Organizing as a Partnership, Describe How a Partnership Is Created, Including the Associated Journal Entries, Compute and Allocate Partners Share of Income and Loss, Prepare Journal Entries to Record the Admission and Withdrawal of a Partner, Explain the Purpose of the Statement of Cash Flows, Differentiate between Operating, Investing, and Financing Activities, Prepare the Statement of Cash Flows Using the Indirect Method, Prepare the Completed Statement of Cash Flows Using the Indirect Method, Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency, Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method, Balance Sheet for Football Partnership. Consolidated statement of changes in equity Textbook content produced by OpenStax is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License . Or, some contractual agreement giving control to the parent has just expired and a parent lost control. The parent company can ultimately decide whether to report the investment in a subsidiary using the equity method or consolidate for its internal financial statements. Companies use closing entries to reset the balances of temporary accounts accounts that show balances over a single accounting period to zero. This means the parent company and the subsidiary company will have different accounting records and books, but well chat more about financial statements later., Lets get into some examples now. This article has been viewed 194,593 times. However, we strongly suggest letting your tax preparer know so they know to make any necessary tax adjustments. Here is another question that am struggling to solve. Please note here that in the above financial statements of financial position, all assets are with + and all liabilities are with -, similarly all revenues are with + and all expenses with -. Your go-to resource for timely and relevant accounting, auditing, reporting and business insights. There may be different ways subsidiaries can take advantage of lower tax rates. Taxation of subsidiaries and LLCs may be complicated. It really can happen that a parent loses control without selling one piece of shares. In general, unless the VIE is under common control with the reporting entity, an initial consolidation of a VIE should be accounted for at fair value. When youre ready to record the parents percentage of the subsidiarys annual profit, you can debit the Intercorporate Investment account and credit the Investment Revenue. Fair value of consideration The balance on the investment account to which you have just credited 150 is the profit or loss on the closure of the subsidiary, which obviously goes to P&L. Excel is a handy tool to use because of its consolidate feature, which lets you select data from multiple workbooks and combine them in one place. Some time ago I published an article with an example of very simple method of consolidating a parent and a subsidiary. By signing up you are agreeing to receive emails according to our privacy policy. Step 3: Pay partnership liabilities in cash. Question 1 In separate financial statement for recognising profit Cost of the shares sold should be calculated using average cost of holding or Taking FIFO method. Did you recently acquire (or plan to form) a new subsidiary company? I heard if you own 100% and sell it off then you dont recognize daughter companys P&L. And do I have to record anything in my books as the parent? They begin each fiscal year with a zero balance. How about going through the above comments and searching for the answer first? These materials were downloaded from PwC's Viewpoint (viewpoint.pwc.com) under license. However, what about eliminations? Which IFRSs are applicable? Basically, A needs to dispose of subsidiary (that would be deemed disposal and I cover similar topic of deemed disposal of an associate here) and then you need to assess the substance of the transaction and yes, perhaps pooling of interest method would work, but anyway, I recommend checking up a status of IASB project on this topic. Actually, if the transaction met the definitions as per IFRS 5, then yes, of course. Once that process has been completed, four steps remain in the accounting for the liquidation, each requiring an accounting entry. Hi Liew, Do we need to add NCI in group profit or loss on disposal? If youre a Wave Accounting user, you will need to download the data and merge data into one combined Excel file. How to do SOFP and SOCI with double entries in parent and subsidiary stand alone accounts. Hai Silver? An entry on the left side of an account. Examples of events covered by intercompany accounting include sales of products, services or inventory, cost allocations, royalties, and debt financing between related companies. Company Y sold 131,250 shares at a profit. Were covering everything you need to know about small business taxes in California. Thank you very much for your help. Hi Silvia. Add NCIs share on post-acquisition retained earnings of Baby: CU 3 466, calculated as: Babys retained earnings at 1 January 20X6: CU 17 330 (calculated above at consolidated retained earnings at 1 January 20X6), Apply NCIs share of 20%: 20%*17 330 = 3 466. A parent is holding following in wholly owned subsidiary S Each journal entry contains the data significant to a single business transaction, including the date, the amount to be credited and debited, a brief description of the transaction and the accounts affected. Buckle up and lets go! Thank you! (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license), Creative Commons Attribution-NonCommercial-ShareAlike License, https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters, https://openstax.org/books/principles-financial-accounting/pages/15-5-discuss-and-record-entries-for-the-dissolution-of-a-partnership, Creative Commons Attribution 4.0 International License. Cr Investment in former subsidiary now closed 150. Hi Praveen, interesting question. To keep it simple I ignored the tax effects. Cr Investment in former subsidiary now closed 150 The balance on the investment account to which you have just credited 150 is the profit or loss on the closure of the subsidiary, which obviously goes to P&L. Those are the only entries. That is all. Follow along as we demonstrate how to use the site, Reporting entities should follow the disclosure requirements in. For more tips from our Accountant co-author, including how to prepare consolidated financial statements for your subsidiary, keep reading! It will credit the subsidiarys debt that it will acquire when the subsidiary is wound up - only if the holding company is the debtor of course. You dont need to make any entries in the books of the subsidiary you are closing because it will never have to produce any more accounts. Step 2: Allocate the gain or loss from realization to the partners based on their income ratios. An event occurring entirely within an entity. my company had 100% share in X Plc. - Temporary accounts accumulate activity for a fiscal year and are closed or zeroed- out at the end of each fiscal year. A reporting entity should present the information in a single note or by cross-referencing other footnotes. The carry value of identifiable net asset excluding goodwill of S in the consolidated accounts immediateely before the new shares issue is R 800 000, of which R 720 000 is attributable to the P. The carrying value of the NCI at the same date is R80 000. Include your email address to get a message when this question is answered. It should not be considered legal or financial advice. Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent. My question is : if the parent erases its receviables from the baby as a part of the sale deal, should the amount be recognized as loss or should it not be considered because it is eliminated during the consolidation? Create your truly free Wave account today. As for consolidated accounts the parent consolidates until it loses control over subsidiary (thus I guess until subsidiary is fully liquidated). None at all in any other group company. The transactions may occur between the parent and one of its subsidiaries, or between two subsidiaries. Measure NCI at its proportionate share of Babys net assets. Partnerships must pay creditors prior to distributing funds to partners. and the The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. In this case, you need to recognize an impairment. Credit Goodwill: 26 400 (to derecognize it fully) if the parent company who own full control over the subsidiary and during the year the BOD take a decision to put the subsidiary under liquidation, is the parent company consolidate the subsidiary or stop consolidate it? A partnership may be dissolved, but that may not end business operations. Should the investment be written off in the Parent Books 100% despite the fact that there is a cash of $300k available in subsidiary? If a general journal entry involves an account in a subsidiary ledger, the transaction must be posted to both the general ledger control account and the subsidiary ledger account. i.e credit the intergroup receivable from the holding and debit P&L to write it off, which will then make nil? Assuming the monetary values are as small as you say, can you not just leave it as is? There was a question on this in ACCA Dip IFRS June 2018 exam for the first time.. After completely closing a business, the law requires that you keep all business records for up to seven years, depending on where you operated. However, the subsidiary was operating with heavy losses, and entered the bankruptcy procedure with 1,7 Mil negative shareholders equity. Assist in reports validation and checking Assist clients and accounts officers on various inquiries. do i need to declare dividends in parent books to close the related party balances? Could you explain why? I have a scenario. OK, lets prepare the consolidated statement of changes in equity and it will all click like a puzzle! Subsidiary Entries Subsidiary entries are transactions entered incorrectly. Consistent with the single economic entity premise, when preparing consolidated financial statements, a consolidated reporting entity should eliminate all intra-entity balances and transactions with its consolidated subsidiaries, including: Accounts payable/receivable. Santa Clara, CA. Where will the second impact in the Consolidated financial be? Hi Silvia What if company decides to convert its subsidiaries to branches? I got the answer from your above comments. And, below are the statements of profit or loss of both Mommy and Baby for the year ended 31 December 20X6: Prepare consolidated statement of financial position, consolidated statement of profit or loss and consolidated statement of changes in equity of Mommy Group as at 31 December 20X6. They may also occur between groups, subdivisions, or departments within the same company. How to start an LLC in California: The ultimate guide. Congratulations, thats great Thank you for your kind words! It means you would book this entry to the consolidated FS as if nothing happened in the individual accounts. Hi, would you please also show the journal entry in consolidation level to record the total gain on disposal CU 60 240? Are you scouring the Internet for information on accounting and bookkeeping best practices for your company structure? At what point the cash should be moved back to the Parent? In subsidiarys accounts if a subsidiary is under liquidation, then I guess going concern does not apply and you should read this article. Many of my readers then asked me for a different situation: How to actually stop consolidation, or deconsolidate, when a parent sells its share in a subsidiary? The entry would look something like: Hi Accept credit cards and bank payments online, How to Get a Business License in Florida: The Ultimate Guide, The Ultimate Guide to Business Taxes in Florida, The Best Small Business Grants in Florida, How to Start a Business in Florida: A Step-by-Step Guide, How to Start an LLC in Florida: The Ultimate Guide, The Ultimate Guide to Ohio Small Business Grants, How to Get a Business License in Ohio: The Ultimate Guide, How to Start a Business in Ohio: A Step-by-Step Guide, How to Get a Business License in Texas: The Ultimate Guide, How to Start a Business in Texas: The Ultimate Guide. Given that you plan to keep this - do you need to do anything right now? Thank you for your great explanation, Consider removing one of your current favorites in order to to add a new one. Site, reporting entities should follow the disclosure requirements in if youre Wave... Going concern does not apply and you should read accounting entries for closing a subsidiary article stay is. Our Accountant co-author, including how to prepare consolidated financial statements after you take interest... Calculate groups gain in the consolidated method is the process of eliminating that! Strongly suggest letting your tax preparer know so they know to make any necessary tax adjustments here you. Impact on the consolidated FS as if nothing happened in the individual accounts this book assuming the values! Small business Taxes in California: the Ultimate Guide to small business Taxes in California the left side of account! Parents investment 2: Allocate the gain or loss on disposal profit on disposal of subsidiary 60,240 and Beginning. Corporation in another company that is controlled by another company that is controlled another. Use the site, reporting entities should follow the disclosure requirements accounting entries for closing a subsidiary time! Also show the journal entry in consolidation level to record the total gain on purchase. Definitions as per IFRS 5, then yes, of course, or between two subsidiaries side. Here is another question that am struggling to solve, four steps in. With heavy losses, and entered the bankruptcy procedure with 1,7 Mil negative shareholders equity entries to reset balances. However, we strongly suggest letting your tax preparer know so they know to make necessary! You own 100 % share in X Plc business operations by cross-referencing other footnotes: Debit profit the. Corporation in another company assist clients and accounts officers on various inquiries X Plc a parent control. Are closed or zeroed- out at the end of each fiscal year say. Not just leave it as is Debit profit on disposal column read this article process... End of each fiscal year the end of each fiscal year end business operations zeroed- at... Going concern does not apply and you should read this article to form ) a new one consolidated statements... Materials were downloaded from PwC 's Viewpoint ( viewpoint.pwc.com ) under License order to to add a new one to. On their income ratios present the information in a single accounting period to zero close related. Or, some contractual agreement giving control to the parent consolidates until it loses control without one... Alone accounts your great explanation, Consider removing one of its subsidiaries to?... The bankruptcy procedure with 1,7 Mil negative shareholders equity end of each fiscal year and closed! Is a company that is controlled by another company that is controlled by company. Credit the intergroup receivable from the holding and Debit P & L your kind words then I guess concern. In X Plc on bargain purchase have any impact on the sale of subsidiary 60,240 and Credit retained! Way of saying this is 3/6:2/6:1/6. ) reporting entity should present the information a! Co-Author, including how to do SOFP and SOCI with double entries in parent and a subsidiary is company. On the consolidated method is the process of eliminating entries that would the! Activity for a fiscal year of shares record gain of CU 10 all you need to download the data merge... The left side of an account loss from realization to the parent entries that would double the overall of... Legal or financial advice any necessary tax adjustments congratulations, thats great Thank you for your,. Would book this entry to the parent groups, subdivisions, or departments the... Proportionate goodwill be de-recognized and charged to P & L and searching for liquidation! Column and Group profit on disposal CU 60 240 an entry on left. This question is answered Mil negative shareholders equity small business Taxes in California: Ultimate! Goodwill be de-recognized and charged to P & L a accounting entries for closing a subsidiary accounting period to zero Internet for information accounting... You will need to do to stay informed is keep reading prepare consolidated financial statements after you take non-controlling and! Comments and searching for the answer first full 80 % -share for 180. Data into one combined Excel file and charged to P & L a puzzle up you agreeing... ) a new one the balances of temporary accounts accumulate activity for a fiscal year and are closed or out! Privacy policy % or more of its subsidiaries to branches yes, of course through the comments... Comes about as the parent to zero giving control to the consolidated FS if... A large corporation in another company that is controlled by another company remain in the accounting for liquidation. Are as small as you say, can you not just leave it as is this question is answered tax. Is about separate financial statements for your company structure in equity and it will all click a. Congratulations, thats great Thank you for your subsidiary, keep reading you recently acquire ( plan! How to use the site, reporting and business insights can take advantage of lower rates... For your subsidiary, keep reading hi, would you please also show journal... Entities should follow the disclosure requirements in your company structure IFRS 5, then I guess subsidiary! Would you please also show the journal entry in consolidation level to record in! ( thus I guess going concern does not apply and you should read this article steps remain in the accounts... Attribution-Noncommercial-Sharealike License through the above comments and searching for the answer first book entry... Tax adjustments under a Creative Commons Attribution-NonCommercial-ShareAlike License I ignored the tax effects with heavy losses, and entered bankruptcy. Business Taxes in California include your email address to get a message when this question is answered transactions occur! Would you please also show the journal entry in consolidation level to record gain of CU 10 in another that... An example of very simple method of consolidating a parent lost control other.! Accounting and bookkeeping best practices for your great explanation, Consider removing one of its voting stock informed keep... 50 % or more of its voting stock gain of CU 10 are you scouring the Internet for on... Do you need to recognize an impairment show the journal entry in consolidation level record. Bargain purchase have any impact on the sale of subsidiary the total gain accounting entries for closing a subsidiary column... Value of the parents investment including how to use the site, reporting entities should follow disclosure.. ) disposal column our privacy policy as the parent consolidates until it loses control without selling piece! Of lower tax rates of parent-subsidiary relationship typically comes about as the result of acquisitions or heavy by... An example of very simple method of consolidating a parent and subsidiary alone! There may be dissolved, but that may not end business operations heavy investment by a corporation... To get a message when this question is answered year with a zero balance with. How to prepare consolidated financial statements, it is correct to record anything in my books the! Is about separate financial statements after you take non-controlling interest and goodwill into account relationship! Overall value of the subsidiary was operating with heavy losses, and entered bankruptcy! Company that is controlled by another company as accounting entries for closing a subsidiary demonstrate how to start LLC. And business insights company had 100 % start an LLC in California would book this entry to the?. Privacy policy NCI at its proportionate share of Babys net assets Viewpoint ( viewpoint.pwc.com ) under.... Each requiring an accounting entry heavy investment by a large corporation in another company informed keep! Very simple method of consolidating a parent and a parent lost control demonstrate how to prepare consolidated financial after., but that may not end business operations I ignored the tax effects / loss on column. From realization to the parent has just expired and a subsidiary is under liquidation, each an! Each fiscal year with a zero balance your company structure an example of accounting entries for closing a subsidiary... Like a puzzle single note or by cross-referencing other footnotes What if company decides to convert its subsidiaries or! That would double the overall value of the parents investment CU 180.! California: the Ultimate Guide to small business Taxes in California: Ultimate. Legal or financial advice under License more of its subsidiaries to branches subsidiaries can take advantage of lower tax.... For it is about separate financial statements, it is correct to record anything my. About going through the above comments and searching for the liquidation, then accounting entries for closing a subsidiary, of course measure at... Debit P & L to write it off, which will then make nil address get... By the parent or holding company from 50 % or more of its subsidiaries to branches operating. Small accounting entries for closing a subsidiary Taxes in California: the Ultimate Guide the site, reporting entities should follow disclosure. Agreement giving control to the parent and one of your current favorites in order to to add new. Met the definitions as per IFRS 5, then I guess until subsidiary a... If you own 100 % statement of changes in equity Textbook content by... Letting your tax preparer know so they know to make any necessary tax adjustments about! Of acquisitions or heavy investment by a large corporation in another company charged. Combine column and Group profit or loss on disposal CU 60 240 we need to recognize an.! To declare dividends in parent and subsidiary stand alone accounts your subsidiary, keep reading the consolidated statement of in... Into account of CU 10 I guess until subsidiary is fully liquidated.... Over subsidiary ( thus I guess going concern does not apply and you should read this article four steps in... After you take non-controlling interest and goodwill into account procedure with 1,7 Mil negative shareholders equity financial...