Consolidating income statements speed dating for teachers
However, when reporting financial information, the parent company is required to submit financial statements that combine their information with that of their subsidiaries.
These documents are called consolidated financial statements and allow the health of the group to be assessed as a whole, rather than piece-by-piece.
Organizing Your Information Setting Up a Worksheet Combining Financial Statements Eliminating Duplicate Values Community Q&A Many large companies are partially or entirely made up of smaller companies that they've acquired throughout the years.
Examples include a balance sheet, statement of cash flows, statement of owners’ equity and a statement of profit and loss.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.Consolidating financial statements is the accounting process that ultimately leads to consolidated financial statements.Both concepts are distinct -- one refers to a process, whereas the other is the final result.