USA Consolidation of entities with different year-ends

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Jan 26, 2012
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Hi there,

I'm looking for guidance on the consolidation and reporting upon for two entities with different year-ends. A church (with a 6/30 year-end) has a controlling interest in a pre-school (with an 8/31 year-end) - both of which I am auditing. ARB 51 states that "It ordinarily is feasible for the subsidiary to prepare, for consolidation purposes, statements for a period which corresponds with or closely approaches the fiscal period of the parent. However, where the difference is not more than about three months, it usually is acceptable to use, for consolidation purposes, the subsidiary's statements for its fiscal period..."

Considering how the sub's year-end is after the parent year-end, should I be considering the consolidation of the 8/31/11 (sub) and 6/30/12 (parent) financials or the 8/31/12 and 6/30/12, respectively?

Thank you!
 
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Dec 6, 2012
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8/31/12 and 6/30/12 is within three months. 8/31/11 (sub) and 6/30/12 (parent) is not within three months. Hope I answered the question.
 

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