Consolidated Accounting


Consolidated accounts combine the financial statements of separate legal entities controlled by a parent company into a set of financial statements for the entire group of companies. The concepts explain the advantages and drawbacks of this approach, how to implement it and various measures and success factors.

Technique Overview

Consolidated Accounting Definition

Consolidated accounting is the process of adjusting and combining financial information from individual financial statements of the parent undertaking and its subsidiary to prepare consolidated financial statements that present financial information for the group as a single economic entity. In other words, consolidated financial statements combine the financial statements of separate legal entities controlled by a parent company into one for the entire group of companies (Rathore, 2008).

Consolidated Accounting Description *

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Business Evidence

Consolidated Accounting Strengths *

Consolidated Accounting Weaknesses *

Examples of Consolidated Accounting *

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Business Application

Consolidated Accounting Implementation *

Success Factors of Consolidated Accounting *

Measures of Consolidated Accounting *

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Professional Tools

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Further Reading

Consolidated Accounting Web Resources *

Consolidated Accounting Print Resources *

Consolidated Accounting References (4 of up to 20) *

  • CIMA (2013) F1: preparing consolidated financial statements, Velocity Magazine, April 2013. Available at: http://www.cimaglobal.com/Students/Student-e-magazine/Velocity-April-2013/F1-preparing-consolidated-financial-statements/
  • Economics Week (2010) Gammon Gold Inc.; Gammon Gold reports changes in foreign exchange translations requiring a restatement of 2008 and 2009 financial statements. Available at http://search.proquest.com.elib.tcd.ie/docview/288579410/fulltext/13321F54CF7784A0782/40?accountid=14404#
  • Glautier, M. W. E., and Underdown, B. (1976) Accounting theory and practice. Prentice Hall, England.
  • Godfrey, J. M., and Chalmers, K. (2007) Globalization of economic standards. Edward Elgar Publications, UK.

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