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What is the difference between consolidated and combined financial statements?
Wiki User
∙ 15y ago
Consolidated f/s like combined f/s sum up the reporting entities or subsidiaries transactions into a total. The difference is that consolidated f/s will eliminate transactions where subsidiary entities bought and sold goods or loaned each other money. For example lets say we have Parent company P and subsidiary companies S and T. S sells 1,000 widgets to T for 10 each = $10,000. S would record revenue of $10,000 and T would record expense of $10,000. However when P consolidates the f/s P would eliminate that sale as an inter-entity transaction, if not, then revenue and expenses would be over stated by $10,000. P is really just moving money from one pocket to another, there is no sale where P actually gains real income. Hope this was helpful.
Wiki User
∙ 15y ago
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What is a consolidated financial statement?
it is combined statement of parent company and subsidary company
For GAAP purposes may combined financial statements be issued for affiliated companies which have different reporting periods for tax purposes?
I think its to make persons in a organization aware of certain changes.
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
In a combined statement of financial position the liabilities and net assets section why are total liabilities and unrestricted net assets added together?
Because Assets = Liabilities + Equity. (Net Assets is equity ... with a fancy name and broken into components.) And just to clarify: 1. It's Total Liabilities + Total Net Assets - not just unrestricted net assets, unless you're using a prescribed form that deviates from GAAP. 2. This is regardless of the statement being combined / consolidated, etc. Assets = Liabilities + Net Assets (Equity).... keep it simple and you woun't get confused!
What is materiality and inmateriality in an audit?
Materiality is the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. While that the relevant financial statement bases and presumptions on the effect of combined misstatements or omissions that would be considered Immaterial. It does not affect the financial statement.
What areinancial statements in which financial data for two or more companies are combined as a single entity called?
consolidated statements
What is meant by consolidated profit and loss?
When there is a parent and subsidiary companies exists in that situation the combined financial information of parent company as well as subsidiary companies are shown under one statment which are called consolidated financial statements so in consolidated profit and loss account combined information of both parent and subsidiaries shown together rather preparing separate statements.
What is meant by profit and loss?
When there is a parent and subsidiary companies exists in that situation the combined financial information of parent company as well as subsidiary companies are shown under one statment which are called consolidated financial statements so in consolidated profit and loss account combined information of both parent and subsidiaries shown together rather preparing separate statements.
A combined financial statement of a parent company and its subsidiaries is called?
a consolidated financial statement
A combined statement of a parent company and its subsidiary is called?
a consolidated financial statement
What is a consolidated financial statement?
it is combined statement of parent company and subsidary company
What is the difference between a consolidated and non-consolidated balance sheet?
It is very simple: consolidated financial data: One a parent company posts/files its combined financials that is parent's data as well as subsidiaries data collectively (Summed) that is Consolidated Financials. Non/Un-Consolidated Financials: When Parent company posts/files its financials separately that is stand alone financials of parent and side by side its subsidiaries data.
What is a unconsolidated balance sheet?
When there is parent subsidiary relationship exists and in that case if separate financial statements are prepared by both parent and subsidiary company those statements are called unconsolidated statements.
What is the difference between consolidated financial statements and consolidating financal statements?
Consolidating shows detailed information by business unit of what makes up a total number, however Consolidated just shows the total figure. For instance if company Z owns company A, B and C, then the consolidating financial statements will show the details of company A, company B and Company C, whereas Consolidated financial statements will just show the total of A B and C.
For GAAP purposes may combined financial statements be issued for affiliated companies which have different reporting periods for tax purposes?
I think its to make persons in a organization aware of certain changes.
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
What is the difference between commercial math and financial math?
Wagner does finantial maths and Mary does commercial maths their brilliance combined makes wagbo source: wagbos autobiography
