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Practical guide on Consolidation - Singapore As businesses grow, many are involved in investment activities to grow or diversify their operations, this can include acquisition or setting up businesses and other entities. Forms of acquisition can be established in a myriad of ways and the focus in this guide is to touch on the more common options: - Parent Subsidiary Relationship - Setting up a Joint Arrangement or Joint Venture - Investment in Associates Steps on Consolidation Process To break it down, consolidation process can be look at 3 steps. Combine: Combining balance sheet items like assets, liabilities equity, income and cash flow between parent and subsidiaries. Offsetting: Remove the carrying amount on parent's investment in the subsidiaries and the parent equity holdings in each subsidiaries. Elimination: To remove all inter-company…