List all duplicate accounts (which will not show on the balance sheet), and combine all others in the consolidated balance sheet column.Use the amount the parent company paid for assets as the current value for subsidiary assets acquired by the parent.
Add together all liabilities from separate entities according to type (i.e. The consolidated balance sheet should show all liabilities adopted from purchased or pooled companies as well as the parent company's liabilities.
Organizing Your Information Setting Up a Worksheet Combining Financial Statements Eliminating Duplicate Values Community Q&A Many large companies are partially or entirely made up of smaller companies that they've acquired throughout the years.
After their acquisitions, these smaller companies, or subsidiaries, may have remained legally separate from the large corporation, or parent company.
The external shareholders have to be made aware of a) Resource controlled by the parent b) Obligation of the group and c) the performance of the group with using such resources .
This objective is possible only through consolidated financial statement The companies which are having subsidiaries, Joint ventures and associates shall have to prepare consolidated financial statement, it presents the financial position, operating results and statement of cash flow of a group of companies.