A group refers to an entity (parent) and the other entities that it controls (subsidiaries). Accounts consolidation services can combine the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries and present the numbers as those of a single economic entity. Consolidation procedures involve eliminating the parent’s investment in each subsidiary (in the parent’s separate financial statements) against the parent’s portion of equity of each subsidiary (in the subsidiary’s standalone financial statements), as well as the intragroup balances and transactions. The parent is required to prepare consolidated financial statements in accordance with FRS, except if it meets all following conditions:- (i) it is a wholly-owned subsidiary or is a partially-owned subsidiary of another entity and all its other owners, including those not otherwise entitled to vote, have been informed about, and do not object to, the parent not presenting consolidated financial statements; (ii) its debt or equity instruments are not traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); (iii) it did not file, nor is it in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and (iv) its ultimate or any intermediate parent produces financial statements that are available for public use, in which subsidiaries are consolidated or are measured at fair value through profit or loss. If you are a parent company, accounts consolidation services may be a good option to consider. Consult with Chartsworth’s Accounting Advisory experts to explore how accounts consolidation can empower your business.