It is specifically reported that the IFRS have been applied in finandials consistent manner to link the periods presented in this document. The financial statements have been prepared on consolidated financials format basis of the conventional historical cost principle, except for the measurement of certain financial assets and liabilities, including derivatives instruments, consolidated financials format the application of the fair value principle is mandatory. The financial statements used for consolidation purposes are those prepared by the Boards of Directors for approval by the shareholders of the individual companies.
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. A parent company can operate separately from its subsidiaries ; when operating separately, each reports their own financial statements. However, because the subsidiaries form one economic entity, investors, regulators, and customers find consolidated financial statements more beneficial to gauge the overall position of the entity. Consolidated Statement of Income The consolidated financial statements only report income and expense activity from outside of the economic entity.
Consolidated Financial statements play a very important role in helping the investors to make proper investment decisions. Clause 3 of Section 129 of the Companies Act, 2013 has made it mandatory for companies having one or more subsidiaries, to prepare Consolidated Financial Statements. According to this section, if a company has one or more subsidiaries, it shall be required to prepare these statements, in addition to separate financial statements, of the company and of all the subsidiaries in the same manner as it prepares of its own. What actually are Consolidated Financial Statements? Consolidated Financial Statements are the financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.