Consolidated Financial Statements

Consolidated financial statements present the assets, liabilities, equity, income, expenses, and cash flows of a parent and its subsidiaries as a single economic entity. IFRS 10 requires them when a parent controls one or more subsidiaries, and control is the single basis for consolidation. ASC 810 is the US GAAP equivalent.

The group applies uniform accounting policies, then combines like items line by line across the three financial statements. It offsets the parent's investment in each subsidiary against its share of that subsidiary's equity, with any goodwill recognized under IFRS 3. Intercompany elimination removes intra-group balances, transactions, and unrealized profits in full.

Non-controlling interests (minority interest) appear within equity, separate from the parent owners' equity, and foreign subsidiaries are translated into the group reporting currency. For FP&A teams, consolidated statements are the group's reported results. Entity-level budgets and forecasts need the same structure, eliminations, and FX rates to reconcile with them.