A Consolidated Financial Statement is used when you have a parent company along with its subsidiaries. Like the Financial Statement, the consolidated financial statement takes the flows of money from both the parent and subsidiaries and combines them into one statement hence this is why it is called consolidated. Knowing what information is required by the Financial Accounting Standards Board is very critical, so that information is not miss represented, and the company is reporting their company properly. The objective of the consolidated financial statement is to require the parent company that controls one or more other entities also known as subsidiaries to present the statement. The parent company must also present how much control they have over their subsidiary(s), and that control determines exactly what must be accounted for on the consolidated financial statement ( Warfield, Gribble, etc, 1996).
Disclosures are another part in the financial statements, and are required by the Financial Accounting Standards Board. The purpose of the disclosure is to explain recognized items and provided relevant measures of items that are not measured on the financial statement as well as describing unrecognized items and provides a useful measurement for those items. What the disclosure does is provide d information to help the investor as...
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...erivative Instruments and Hedging Activities: an amendment of FASB statement No 133/ Level of authority: GAAP Level A: Miller GAAP Update Service 8.1. Retrieved from http://search.proquest.com.prx-keiser.lirn.net/docview/192391994/14335C8D2B118D6AB7A/1?accountid=35796
Warfield, T; Gribble, J; Lang, M; Lee, C. (1996) Response to the FASB Exposure Draft, “Proposed Statement of Financial Accounting Standards-Consolidated Financial Statements: Policy and Procedures:” Accounting Horizons 10.3 182-185. Retrieved from http://search.proquest.com.prx-keiser.lirn.net/docview/208901068/14335C45C80F4E580F/1?accountid=35796
Wilson, A.; Jones, J. (2004) New accounting guidance for variable interest entities: will the new rules reduce the risk? Balance Sheet 12.1 Retrieved from http://search.proquest.com.prx-keiser.lirn.net/docview/204699158/143351D7CA33B956889/2?accountid=35796
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