Consolidated Financial Statements

The combined financial statements of a parent company and its subsidiaries.

Investopedia Says:
Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge the overall health of an entire group of companies as opposed to one company's stand alone position.

Related Links:
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. Introduction To Fundamental Analysis
Learn what it means to do your homework on a company's performance and reporting practices before investing. Advanced Financial Statement Analysis
Discover how to keep score of companies to increase your chances of choosing a winner. What You Need To Know About Financial Statements
Learn how to trace where your tax dollars and charitable donations are going. Navigating Government And Nonprofit Financial Statements

Statement that brings together all assets, liabilities, and operating accounts of a parent company and its subsidiaries. It presents the financial position and results of operations of the parent company and its subsidiaries as if the group were a single company with one or more branches. The technique for preparing consolidated financial statements is to take the individual statements to be consolidated and to combine them on a worksheet after eliminating all intercompany transactions and intercompany relationships. Most firms prepare consolidated statements when they hold more than 50% of the subsidiary's stock. See also Combined Financial Statement; Consolidation.