Consolidated Financial Statements

Combined financial statements of a parent corporation and all its subsidiaries.

G Company had income of $2,000. It owns subsidiary H. Subsidiary H had income of $3,000 with no intercompany transactions. If they did a consolidated income statement, the income figure would be $5,000, a combination of both incomes. The rules for consolidated statements are quite complex.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/consolidated-financial-statements/