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Consolidated Financial Statements
Consolidated Financial Statements are the Balance Sheet, Income Statement and Statement of Cash Flows of two or more business entities. Consolidated statements present financial information about a parent company and one or more subsidiaries as if the corporation and its subsidiaries were a single business entity. The process of consolidating statements involves taking the individual financial statements and consolidate them.
It is common for a corporation that has one or more subsidiaries to release only consolidated financial statements in which the Assets, Liabilities, Equity, Revenues, and Expenses are combined to create a single consolidated Balance Sheet, one Income Statement and one Statement of Cash Flows. When a company owns more than 50% of the voting stock of another corporation, the financial statements are combined a.k.a. consolidated.
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