The parent company has a controlling interest of 50 to less than 100 percent in the subsidiary and reports financial results of the subsidiary consolidated with consolidated financials example own financial statements. For example, suppose that Company A acquires a controlling interest of 75 percent in Company B. The latter retains the remaining 25 percent of tinancials company. On its financial statements, Company A cannot claim the entire value of Company B without accounting for the 25 percent that belongs to the minority shareholders of Company B. Accounting Treatment The concept of minority interest is applied only when the ownership share in a subsidiary exceeds 50 but is consolidated financials example than 100 percent.
Updated May 22, 2018 What is Consolidated Financial Statements Consolidated financial statements are the combined financial statements of a parent company and its subsidiaries. Consolidated financial statements present an aggregated look at the financial position of a parent company and its subsidiaries, and they provide a picture of the overall health of an entire group of companies as opposed to one company's standalone position.