Consolidated Financial Statements

Abstract

Financial statements of a parent or holding company and its subsidiaries are called consolidated financial statements . The monetary amounts in the underlying financial statements of the parent and its subsidiaries are amalgamated as if the group were a single entity. Group or consolidated financial statements may also include amounts for associates and joint ventures. Where subsidiaries are not wholly owned, the element not owned by the parent company is deducted in a one‐line adjustment called noncontrolling or minority interests. Four concepts of control are considered: legal, economic (entity), parent company, and proprietary concepts of control. Five methods of consolidation are discussed: the acquisition method, merger method, equity method, gross equity method, and proportionate consolidation. Simple illustrative examples are used to explain the mechanics of basic consolidation.

A comparison of stakeholder engagement practices in voluntary sustainability standards

“…(RA, 2023;SAN, 2015) ‡ †BCI does not report financial statements for 2016, the year in which the consultation was conducted. Hence, prior year data are used here.…”