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Please clarify

Shankar BA(Hons) (CS) (278 Points)

24 June 2015

NET WORTH STATEMENT

1) Does it mean Consolidation of Balance Sheet(s) ?

2) If not, what is it ?

Please clarify

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3 Replies

Arpit Shah (Accountant) (21438 Points)
Replied 24 June 2015

a statement that shows the financial position of a parent company and its subsidiary companies at a specified date by listing the asset balances and the claims on such assets ⇒ Businesses are often operated as a group of companies and the consolidated balance sheet shows the combined results of the group.

Arpit Shah (Accountant) (21438 Points)
Replied 24 June 2015

DEFINITION of 'Consolidated Financial Statements'

The combined financial statements of a parent company and its subsidiaries.

INVESTOPEDIA EXPLAINS 'Consolidated Financial Statements'

Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge the overall health of an entire group of companies as opposed to one company's stand alone position.