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A consolidated financial statement (CFS) is the "financial statement of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity", according to the definitions stated in International Accounting Standard 27, "Consolidated and separate financial statements", and International ...
The purpose of the income statement is to show managers and investors whether the company made money (profit) or lost money (loss) during the period being reported. An income statement represents a period of time (as does the cash flow statement). This contrasts with the balance sheet, which represents a single moment in time.
They typically include four basic financial statements [1] [2] accompanied by a management discussion and analysis: [3] A balance sheet reports on a company's assets, liabilities, and owners equity at a given point in time. An income statement reports on a company's income, expenses, and profits over a stated period. A profit and loss statement ...
The cash flow statement differs from the balance sheet and income statement in that it excludes non-cash transactions required by accrual basis accounting, such as depreciation, deferred income taxes, write-offs on bad debts and sales on credit where receivables have not yet been collected. [5] The cash flow statement is intended to: [6] [7] [8]
The parent company needs to issue consolidated financial statements at the end of the year to reflect this relationship. Consolidated financial statements show the parent and the subsidiary as one single entity. During the year, the parent company can use the equity or the cost method to account for its investment in the subsidiary.
A balance sheet is often described as a "snapshot of a company's financial condition". [1] It is the summary of each and every financial statement of an organization. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business's calendar year. [2]
a statement of financial position (balance sheet) a statement of comprehensive income. This may be presented as a single statement or with a separate statement of profit and loss and a statement of other comprehensive income; a statement of changes in equity; a statement of cash flows; notes, including a summary of the significant accounting ...
Statement of financial activities or statement of support, revenue and expenses. This statement resembles the income statement of a business, but may use terms like excess or deficit rather than profit or loss. It shows the net results, by each fund, of the organization's activities during the fiscal year reported.