Financial Statements

Consolidated financial statements is an annual or interim financial statements of a company. While he represents the Group's financial position and results of a group, he is both the members of the group serve as well as external users to information and decision making. The preparation of consolidated financial statements are first consolidated financial statements of the company standardized and summed to a total conclusion. Subsequently, this will be adjusted through consolidation measures to ensure linkages and economic relations between the group companies. After the unit fiction, which also is called the principle of unity, a consolidated financial statement is presented as if the group were a single company.
In a group, the parent company to have on the Group's subsidiaries, a dominant influence. Thus, there is often relationship between group companies, the independent companies would not normally go. Your business is focused in general on the group and can be better assessed in the group context. Therefore, the individual firings of the parent and the subsidiary are often less meaningful than the individual accounts of independent companies. The assets, liabilities, financial position and results of a group may be better represented by consolidated financial statements. This can also help the financial position and results of each group company to understand better.
Whether a parent has to prepare consolidated financial statements, determine national laws, stock exchange regulations, other accounting rules or agreement. Which companies included in consolidated financial statements (consolidation), is governed by the applicable accounting rules.
The scope of the consolidated financial statements is different depending on the accounting system. Often prescribe the accounting rules that the consolidated financial statements a balance sheet, profit and loss account or statement of comprehensive income, one notes, a statement of changes, including changes in equity referred to, and shall contain a statement of cash flows. Also, segment reporting may be part of the consolidated financial statements. Consolidated financial statements are intended to supplement in Germany and Austria for a consolidated management report.
In Germany, the information function of the consolidated financial statements is in the foreground. He is neither de jure nor the calculation of dividend yield as a basis for taxation.