Question

define the term consolidated financial statements. what Is the rationale for the preparation of such statements?

Answer 1

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.