What is a consolidated financial statement, what different parts are included and who actually has to prepare one? Here we provide answers to the most common questions regarding consolidated financial statements.
What counts as a group?
What is a parent company?
What is a subsidiary?
How does a subgroup arise?
What is consolidated financial statements?
What should be the content of the consolidated financial statements?
- Certificate of declaration. A document certifying that the income statement and balance sheet are adopted by the Board of Directors and the CEO during the Annual General Meeting.
- Management report. Information on the Group’s development, position, results and important events that have taken place during the past year.
- Consolidated balance sheet. a merger of the balance sheets of the parent and subsidiary undertakings in which certain items have been eliminated;
- Consolidated income statement. A reflection of the Group’s total earnings, where all internal profits were eliminated.
- Cash flow statement. A summary of the Group’s annual money flows.
- Sheet music. Consolidated financial statements also include a list of subsidiaries and other associates.
- Audit report. The Group’s auditor’s report shall be included in the financial statements.
How often does consolidated financial statements need to be prepared?
Do all groups have to prepare consolidated financial statements?
Complicated and time-consuming group reporting?
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When do I not need to prepare consolidated financial statements?
Who is responsible for the consolidated financial statements?
Who should sign the consolidated financial statements?
Group elimination – what is it?
Our group includes international subsidiaries. What applies?
Where does the consolidated financial statements end up when they are completed?
The success factor for a correctly prepared consolidated financial statement lies in the acquisition analysis. It describes which assets and liabilities were included in the subsidiary as of the date of acquisition. An acquisition analysis must always be prepared in the event of an acquisition even if the parent company does not prepare consolidated financial statements.
How can Boardeaser help with consolidated financial statements?
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