2 min read
Definition
Consolidated accounts combine the financial statements of a parent and its subsidiaries into a single set, presenting the group as if it were one entity and eliminating transactions between group companies.
In plain terms
They show the true picture of a whole group of companies, stripping out sales and loans that just move money around inside the group so nothing is double-counted.
Why it matters for your company
Larger groups are legally required to consolidate. Consolidated accounts give lenders and investors the real, group-wide financial position — important when assessing a business made up of several companies.
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