Théorie des graphes, participation réciproque et consolidation

Graphs theory, reciprocal stockholding in accounting consolidation

Michel Guérin and Jean Pouget

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract : Until this article published by the journal of French CPA, the regular computation of shareholding interests in consolidating financial accounts for large groups was to cut the financial link when there were reciprocal or circular participation. This article has radically changed the method by using a matrix algebra algorithm and also with the use of a fictitious mother holding company. Before this new method, the usual computation was mathematically wrong. The use of a matrix method, as it is here explained, gives easily all the correct percentages of interests when consolidating a group with complex subsidiaries. Furthermore the method of matrix algebra allows to reconcile all the interco flows and all reciprocal statement accounts.

Keywords: financial accounting; accounting-consolidation; reciprocal and circular stockholding; matrix algebra accounting (search for similar items in EconPapers)
JEL-codes: M4 M41 M42 (search for similar items in EconPapers)
Date: 1972-06
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Published in Economie & Comptabilité (IFEC) Septembre 1972 (1972): pp. 5-11

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