hidden reserves and goodwill

Consolidation (EC-CS)

The difference between (a) the value attributable to an investor's balance sheet item on the date of consolidation, and (b) the value in the balance sheet of an investee, which is either lower (on the asset-side of the balance sheet) or higher (on the liability side of the balance sheet). When the balance of the difference is reversed, this is called "hidden contingency" or "negative goodwill".

Hidden reserves and goodwill can be eliminated during the consolidation of investments if desired.