Consolidated Financial Statements

Accounting Dictionary

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.

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