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Accounting & Tax vocabulary · Reporting Standards

Consolidated financial statements

Meaning in accounting & tax, with examples

nounAdvanced term

In accounting & tax, consolidated financial statements means: Financial statements that combine a parent company and all the subsidiaries it controls as if they were one single business.

In Turkish: konsolide finansal tablolar

How it is used

Intercompany balances and transactions are eliminated on consolidation. Groups publish consolidated statements alongside, or instead of, the parent company's own accounts, which are called separate or standalone statements.

Example sentences

  1. Sales between group companies are eliminated in the consolidated financial statements.

  2. The consolidated financial statements include eight subsidiaries in four countries.

Common collocations

  • consolidation adjustments
  • intercompany elimination
  • group accounts
  • standalone financial statements
  • IFRSInternational Financial Reporting Standards: the global accounting rules issued by the IASB and required for listed companies in more than 140 jurisdictions.
  • annual reportA document a company publishes each year containing its audited financial statements and a review of its business, strategy, risks and governance.
  • goodwillAn intangible asset that arises when a company buys another business for more than the fair value of its identifiable net assets.
  • reconcileTo compare two sets of records, such as the ledger and a bank statement, to make sure they agree, and to find and explain any differences.

More terms: Reporting Standards

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This page explains English vocabulary for learners. It is not financial advice.