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FINANCIAL STATEMENTS CONSOLIDATED | NOTES 30 JUNE 2022!Contents! Financial Statements4Notes to the Financial Statements10Note 1 Introduction10Note 2 Accounting policies102.1 Basis of presentation102.2
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Gather financial statements of all the subsidiary companies
02
Eliminate intercompany transactions to avoid double counting
03
Add together the financial information from all subsidiaries, adjusting for any differences in accounting policies or reporting dates
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Prepare consolidated income statement, balance sheet, and cash flow statement

Who needs consolidated financial statements?

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Companies that have subsidiary companies
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Investors and creditors who want a complete picture of the financial health of a group of companies
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Consolidated financial statements are financial reports that aggregate the financial information of a parent company and its subsidiaries, presenting them as a single entity.
Generally, public companies and certain private companies with significant ownership interests in subsidiaries are required to file consolidated financial statements.
To fill out consolidated financial statements, a company must combine its financials with those of its subsidiaries, eliminate intercompany transactions, and ensure compliance with applicable accounting standards.
The purpose of consolidated financial statements is to provide a clear and comprehensive view of the financial performance and position of a group of related companies as one entity, enhancing transparency for stakeholders.
Consolidated financial statements must report total assets, total liabilities, revenues, expenses, and net income of the parent company and its subsidiaries, along with disclosures about significant accounting policies.
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