What are consolidating financial statements

Even though one "owns" the other, the two enterprises frequently remain separate legal entities, with each responsible for its own bookkeeping.When it comes time to report results, consolidated financial statements and stand-alone statements provide two ways of looking at the companies' performance.(Since the purchases of electricity by MGC from NEP and the purchases of gas by NEP from MGC did not occur outside of the economic entity they are also eliminated.) The .It will also report all of the liabilities of the economic entity.(Amounts owed and receivable between NEP and MGC are eliminated in the consolidated balance sheet.) This is a very brief overview of consolidated financial statements.It is a major topic within the university course and textbook entitled advanced accounting.

Stand-alone financial statements, by contrast, treat each entity as if it were entirely separate -- the parent unrelated to the subsidiaries, and the subsidiaries unrelated to one another.If a subsidiary earned

Stand-alone financial statements, by contrast, treat each entity as if it were entirely separate -- the parent unrelated to the subsidiaries, and the subsidiaries unrelated to one another.

If a subsidiary earned $1 in income, for example, that $1 would show up on the parent's consolidated statement and the subsidiary's stand-alone statement -- but not the parent's stand-alone statement.

It's common for companies to do business with their subsidiaries -- and subsidiaries to do business with each other -- as if they were unrelated.

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.

(Since the sales of electricity from NEP to MGC and the sales of gas from MGC to NEP are not earned outside of the economic entity they are eliminated.) The consolidated income statement will also report all of the expenses that were incurred outside of the economic entity.

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Stand-alone financial statements, by contrast, treat each entity as if it were entirely separate -- the parent unrelated to the subsidiaries, and the subsidiaries unrelated to one another.If a subsidiary earned $1 in income, for example, that $1 would show up on the parent's consolidated statement and the subsidiary's stand-alone statement -- but not the parent's stand-alone statement.It's common for companies to do business with their subsidiaries -- and subsidiaries to do business with each other -- as if they were unrelated.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.(Since the sales of electricity from NEP to MGC and the sales of gas from MGC to NEP are not earned outside of the economic entity they are eliminated.) The consolidated income statement will also report all of the expenses that were incurred outside of the economic entity.

in income, for example, that

Stand-alone financial statements, by contrast, treat each entity as if it were entirely separate -- the parent unrelated to the subsidiaries, and the subsidiaries unrelated to one another.

If a subsidiary earned $1 in income, for example, that $1 would show up on the parent's consolidated statement and the subsidiary's stand-alone statement -- but not the parent's stand-alone statement.

It's common for companies to do business with their subsidiaries -- and subsidiaries to do business with each other -- as if they were unrelated.

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.

(Since the sales of electricity from NEP to MGC and the sales of gas from MGC to NEP are not earned outside of the economic entity they are eliminated.) The consolidated income statement will also report all of the expenses that were incurred outside of the economic entity.

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Stand-alone financial statements, by contrast, treat each entity as if it were entirely separate -- the parent unrelated to the subsidiaries, and the subsidiaries unrelated to one another.If a subsidiary earned $1 in income, for example, that $1 would show up on the parent's consolidated statement and the subsidiary's stand-alone statement -- but not the parent's stand-alone statement.It's common for companies to do business with their subsidiaries -- and subsidiaries to do business with each other -- as if they were unrelated.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.(Since the sales of electricity from NEP to MGC and the sales of gas from MGC to NEP are not earned outside of the economic entity they are eliminated.) The consolidated income statement will also report all of the expenses that were incurred outside of the economic entity.

would show up on the parent's consolidated statement and the subsidiary's stand-alone statement -- but not the parent's stand-alone statement.It's common for companies to do business with their subsidiaries -- and subsidiaries to do business with each other -- as if they were unrelated.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.(Since the sales of electricity from NEP to MGC and the sales of gas from MGC to NEP are not earned outside of the economic entity they are eliminated.) The consolidated income statement will also report all of the expenses that were incurred outside of the economic entity.

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