There is no one size fits all solution for either banking customers or investors, thought there are some companies that offer a 90% solution.
Examine your banking needs, and try to reduce the number of banks you have down to the best 2 or 3 solutions (I understand the convenience of a local bank or the lure of higher interest payments! But it is rare that you might need more than 2 or 3 personal bank accounts (business accounts are in a different category). Examine your investing needs and habits and try to determine if one of your accounts will offer the best solution, or if you need multiple accounts.
NEP acquires all of the stock of Midwest Gas Corporation (MGC). NEP is the parent company and MGC is the subsidiary company.
Each of these corporations will continue to operate its respective business and each will issue its own financial statements.
Group accounts show the financial results of subsidiaries and associates, along with those of the acquiring entity, as though they were all one.
Associates are not under the full control of the acquiring entity, but under its significant influence in terms of operating and financial policies.
Let’s take a look at some of the benefits of account consolidation. I primarily use USAA, but also have an online savings account with other banks because they have higher interest rates in the US at the moment .
In addition, I have an account which I use for many online transactions and as a bridge to my Pay Pal account, and since USAA doesn’t offer business account, I have a business checking account at a local bank and an online business savings account for higher interest.
As the consolidated accounts present results as a single entity, all inter-company transactions of companies included in the consolidation are excluded.
In this example a 50% holding is first treated as an associate using the equity method of accounting, then it is treated as a subsidiary using the full consolidation.
However, the investors and potential investors in NEP will find it helpful to see the financial results and the financial position of the earned from outside customers.