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Consolidated financial statements

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Why is it important to consolidate financial statements? When should financial statements be consolidated? Discuss the pros and cons of consolidating financial statements. Include limitations, if any.

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The solution answers the question below and goes into quite a bit of detail regarding financial statements. The answer is ideal for students looking for a detailed analysis of the question asked below. An excellent response to the question being asked.

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It is important to consolidate financial statements in order to get an aggregate view of the entire business operation. Without consolidation, a business would not know how its performance was overall. Some business units might make money while some others might lose money. ...

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