What is the basic idea underlying the preparation of consolidated financial statements? How might consolidated statements help an investor assess the desirability of purchasing shares of the parent company? Are consolidated financial statements likely to be more useful to the owners of the parent company or to the noncontrolling owners of the subsidiaries? Why? Explain.© BrainMass Inc. brainmass.com October 17, 2018, 11:38 am ad1c9bdddf
Consolidated financials allow financial statement users to assess the overall health and financial position of the parent and subsidiaries simultaneously. If a parent company has many subsidiaries, it would take users a great deal of time to analyze every subsidiary financial statement. The consolidated statement offers a snapshot of the parent and all subsidiaries. It is an ...
This solution discusses the mechanics of consolidated financial statements. This solution discusses why these statements are useful to investors and other users, and if the consolidated statements are more useful to the owners of the subsidiary or to the noncontrolling owners.
Why is it important to consolidate financial statements? 2) When should financial statements be consolidated? Discuss the pros and cons of consolidating financial statements.
Please help me understand and make sure that I am on the right track in answering the following questions: 1) Why is it important to consolidate financial statements? 2) When should financial statements be consolidated? Discuss the pros and cons of consolidating financial statements. Include limitations. if any.View Full Posting Details