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Conclusion: Statements Are The Financial Statements of A Group Presented As Those of A Single Economic Entity

Consolidated financial statements combine the financial statements of a parent company and its subsidiaries into a single report. They present the financial position and performance of a group of companies as a single economic entity. Consolidated financial statements show the overall financial position, results of operations, and cash flows of a parent and its subsidiaries as if they were a single company.

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Jayesh Gawade
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1K views

Conclusion: Statements Are The Financial Statements of A Group Presented As Those of A Single Economic Entity

Consolidated financial statements combine the financial statements of a parent company and its subsidiaries into a single report. They present the financial position and performance of a group of companies as a single economic entity. Consolidated financial statements show the overall financial position, results of operations, and cash flows of a parent and its subsidiaries as if they were a single company.

Uploaded by

Jayesh Gawade
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CONCLUSION

I would like to conclude that

Consolidated financial statements refer to the financial

statements which lead to the subsidiaries of the holding company its summative accounting figure. Putting another way, consolidated financial statements can be addressed as the combined financial statements of a parent company and its subsidiaries.

According to IAS 27 "Consolidated and separate financial statements", consolidated financial statements are the financial statements of a group presented as those of a single economic entity.

As stated by Investopedia, the consolidated financial statements enable you to determine the general health of an entire group of companies as compared to a companys stand alone position. This is because these financial statements provide an aggregated look at the financial position of a company and its subsidiaries.

In simple words it can be say that consolidated financial statement is The combined financial statements of a parent company and its subsidiaries.

Financial statements are either on a stand-alone basis or consolidated. In the stand-alone financial statements the results of the subsidiaries are not consolidated; rather the amount invested in the subsidiaries is reflected at the purchase price. controlled by the group, the obligations of the group and results the group achieves with its resources.
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