What it is
A parent’s consolidated statements add the entities’ balances and then remove what happens inside the group. ASC 810-10-45-1 requires intra-entity balances and transactions to be eliminated, including open account balances, sales and purchases, interest, dividends and any intra-entity profit or loss on assets that remain in the group. This workbook puts the entity trial balances side by side and posts the eliminations from a journal, so every adjustment is visible and can be traced.
The Eliminations journal takes an entry reference, a type, an account from a dropdown and a debit or credit; entries must balance, and every line must match a statement row. Net income flows from the income statement into equity, so an elimination that touches revenue or expense carries through automatically, and the consolidated balance check catches an entry that does not. A noncontrolling interest row and a net-income-attributable-to-NCI row are included.
When to use it
- Year-end consolidation for a parent with up to three subsidiaries.
- Group audit support where the component balances bridge to the consolidated statements.
- Training and review of how intercompany and equity eliminations flow through the statements.
What’s inside
- Consolidating sheet: four entity columns (renamable), combined, elimination debits and credits, consolidated
- Balance sheet, income statement, net income attributable to the parent and noncontrolling interest
- Elimination journal with 60 lines, entry balance check and account match check
- Typical entries for investment and equity, intercompany balances, sales, unrealized profit, dividends and NCI
- Tie-outs from the journal to the statements and zero tests on intercompany balances and revenue
Standard cited
This template follows ASC 810-10. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What must be eliminated?
Intra-entity balances and transactions: open account balances, security holdings, sales and purchases, interest, dividends and similar items. Gain or loss on transactions among the entities in the group is also eliminated, so intra-entity profit on assets remaining in the group comes out (ASC 810-10-45-1).
How do I eliminate intercompany sales when the goods are still in inventory?
Debit intercompany revenue for the selling price, credit cost of sales for the seller’s cost and credit inventory for the difference, which is the unrealized profit. If the goods were resold outside the group, debit intercompany revenue and credit cost of sales for the selling price.
Does the workbook compute goodwill or the noncontrolling interest?
No. Acquisition accounting, fair-value adjustments, goodwill and the NCI amounts come from your acquisition and ownership schedules and are posted as entries on the journal. The workbook carries the result and checks that it balances.
What do the tie-outs check?
That each entity balances on its own, that the combined and consolidated balance sheets balance, that the journal’s debits and credits equal what posted to the statements, and that consolidated intercompany receivables equal payables and intercompany revenue equals expense.
Related templates
- Intercompany Reconciliation and Elimination Worksheet
- Equity Rollforward Template (Corporation and LLC)
- Trial Balance Template with Mapping (Excel)
- Lead Schedule Template (Excel)
Last updated 11/05/2026. All free templates.