For Consolidation of company A and Company B we should check the relationship among the companies such as:-
a. If company A holds more than 50% shares in company B, then Holding subsidiary relationship is established.
b. If company A holds more than 20% shares in company B, then company A is an Associate of company B via substantial Interest.
c. If there is any Joint venture contract between company A and Company B, then a JV relationship is created.
To check whether consolidation is needed, the investment in equity (number of shares) can be checked against the total issued capital (number of shares)
There can be further in-depth questioning on consolidation
