What are consolidating financial statements dating people in paraguay site

Posted by / 01-Nov-2017 03:53

What are consolidating financial statements

Depending on the size of a company and the complexity of its business, the financial statements may be a bit confusing, particularly if the company has several subsidiaries with overseas operations.

For example lets say we have Parent company P and subsidiary companies S and T. S would record revenue of ,000 and T would record expense of ,000.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.Consolidated financial statements combine the financial statements of separate legal entities controlled by a parent company into one set of financial statements for the entire group of companies.For example, let's assume that Northern Electric Power (NEP) is an electric utility with its stock traded on a stock exchange.NEP acquires all of the stock of Midwest Gas Corporation (MGC). NEP is the parent company and MGC is the subsidiary company.

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Consolidating shows detailed information by business unit of what makes up a total number, however Consolidated just shows the total figure.

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