Legal Definitions - consolidated financial statement

A consolidated financial statement is a report that combines the financial information of a company and all its subsidiaries as if they were a single entity. This report provides a comprehensive overview of the financial health of the entire group.

For example, if a company owns several smaller companies, it can create a consolidated financial statement that includes the financial information of all those companies. This statement will show the combined revenue, expenses, assets, and liabilities of the entire group.

A consolidated financial statement is important because it gives investors and stakeholders a clear picture of the financial performance of the entire group. It can also help the company make better financial decisions by identifying areas of strength and weakness across the group.