define the term consolidated financial statements. what Is the rationale for the preparation of such statements?
Consolidated statements are one of the types of financial
statements in which the final accounts or financial statements of
the subsidiaries of the parent company are compiled with that of
with parent company.
The standards the schedules and the applicable disclosure
requirements are the same with respect to the parent and subsidiary
companies.
The general or major purpose for the preparation of consolidated
financial statements is to enable various stakeholders such as
creditors and shareholders of the parent company to assess the
financial position of the company along with its operations of
subsidiary companies, branches or divisions.
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