It is a major topic within the university course and textbook entitled advanced accounting.
If your company has several divisions or wholly owned subsidiaries, consolidating financial statements from all of them gives you a complete picture of the parent company’s financial health.
In this article, we will review consolidated financial reports in more detail including the unique benefits they offer. Consolidated financial reports are prepared by any parent company that owns one or more subsidiaries.
Intuit, the maker of Quick Books, identifies companies that work with Quick Books, including those that can import data from several Quick Books accounts of related companies and produce a consolidated file for creating profit and lost and balance sheet reports.
Be certain to identify each transaction by its class, however, to keep the reports accurate.
Beginning with Quick Books 2011, you can produce a new balance sheet report by class, showing assets, equity and liability, and a consolidated balance sheet for the company.
Each of these corporations will continue to operate its respective business and each will issue its own financial statements.
However, the investors and potential investors in NEP will find it helpful to see the financial results and the financial position of the earned from outside customers.