Advanced Financial Accounting
Consolidation refers to the process of combining the financial statements of a parent company and its subsidiaries into a single set of financial statements. This process is essential for providing a clear picture of the overall financial health of a group of companies under common control, ensuring that all assets, liabilities, revenues, and expenses are accurately represented in a unified manner. Consolidation helps stakeholders understand the economic realities of a business structure where ownership interests may change over time.
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