Why are consolidated financial statements important?
Some of the reasons why consolidated financial statements are so important are:
Transparency: They allow a clear and transparent view of the financial situation of the business group.
Control: They help investors and shareholders to have thailand mobile phone number example greater control over their investments.
Decision making: They facilitate strategic decision making, since there is a complete vision of all the companies that are part of the group.
Find out who must submit consolidated financial statements
Consolidated financial statements are accounting reports that show the economic and financial situation of a group of companies as if they were a single entity. These statements are necessary to provide a global and transparent view of the group's financial situation.
Who must submit consolidated financial statements?
In general, companies that form an economic group must present consolidated financial statements. This includes the parent company and its subsidiaries, as well as any other entity that is under direct or indirect control of the group.
In addition, in many countries, accounting regulations establish certain criteria for determining when a company must present consolidated financial statements. These criteria are usually based on the degree of control that one company exercises over another, such as majority ownership of shares.