Consolidated Statement

A consolidated statement, or consolidated financial statement, is a financial report covering a single entity, a group of entities, or multiple subsidiaries combined. It gives a clear picture of where a company, or a whole group of companies, actually stands financially. The Financial Accounting Standards Board defines it more specifically as a report structured around a parent company and its subsidiaries.

A few things vary depending on the type of company:

• Private companies face relatively few formal requirements around consolidated reporting.
• Public companies need to follow the FASB’s GAAP standards.
• Companies operating internationally need to align with the IFRS standards set by the International Accounting Standards Board.

Putting one together takes real coordination, accounting and finance teams need to pull everything into one place so the balance sheet, income statement, and especially cash flow reporting all reflect accurate numbers. Most companies handle this filing annually.