Investor Glossary-consolidated financial statementInvestor Glossary-consolidated financial statementInvestor Glossary-consolidated financial statementInvestor Glossary-consolidated financial statementInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Consolidated Financial Statement

The HTML to link to this page
 

A consolidated financial statement presents the financial position or results of a parent company and its subsidiaries as if it were a single enterprise. Under Generally Accepted Accounting Principles (GAAP), all majority-owned subsidiaries must be consolidated in a consolidated financial statement of the parent company. Preparing a consolidated financial statement for a firm with a complex capital structure and numerous subsidiaries is an enormously difficult task, and the presentation of a consolidated financial statement raises many accounting issues. The preparation of a consolidated financial statement is often complicated by transactions between parent and subsidiary. Other issues in creating a consolidated financial statement include dealing with minority ownership interests and different fiscal year-ends among the corporate entities. A major controversy in the preparation of a consolidated financial statement is whether a business combination should be accounted for by the purchase method or the pooling method. Nevertheless, only a consolidated financial statement can portray fairly the financial position of the parent company.



Rate this consolidated financial statement definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: ex-dividend, debt service coverage, required rate of return, annual return, FTSE, margin rate, 1035 exchange, Key Rate Duration, FICO score, inflation, quality assurance, option premium, 1031 exchange, current ratio, minority interest, wholly-owned subsidiary, average price per share, phantom income, VIX, EBITDA, in escrow, risk management, diluted share, deferred tax, ex-dividend date, reverse mortgage, deferred revenue, cancelled check, real GDP, per diem, command economy, stock split, stock market close, Zero Cost Collar, dividends payable, class C shares, retained earnings, balance sheet, labor relations, liquidity ratio, APR, 144a, open position, covered put, implied volatility, limit order, 401a, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use