Page 25 - Topic 1 - 1. Consolidated & Separate Financial Statement

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Definitions

• Consolidated financial statements

• are the financial statements of a group in which the assets,
liabilities, equity, income, expenses and cash flows of the parent

and its subsidiaries are presented as those of a single economic

entity.

• A parent

• is an entity that controls one or more subsidiaries.

• A subsidiary

• is an entity that is controlled by another entity (known as a parent).

• A group

• of companies comprises a parent and all its subsidiaries.

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