Financial consolidation

What is Financial consolidation ?

Financial consolidation refers to the process of combining the financial statements of multiple entities within a group to create a single, consolidated financial statement. This is typically done by a parent company that has control over one or more subsidiary companies.

 

What is the purpose of Financial consolidation ?

Consolidating financial statements allows investors, stakeholders, and management to assess the overall financial health of the group as a whole, rather than looking at each entity's financial statements separately.

Financial reporting frameworks give existing and future investors, lenders, and other creditors structured insights into the company’s financial state.

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