Financial statements of a company that has many different divisions or subsidiaries are called consolidated financial statements. In financial statement reporting, companies frequently use the term “consolidated” to refer to the aggregated reporting of their whole firm. These kind of financial statement reporting, on the other hand, is defined by the Financial Accounting Standards Board as reporting of an entity having a parent company and subsidiaries. Financial statement reporting is optional for private firms, but it is required for public corporations.
To generate a financial statement for a firm, specialists must bring together all accounting and financial processes to produce financial statements that reflect correct results in the balance sheet, income statement, and, most crucially, cash flow reporting. Financial statements of these sorts are typically filed on a yearly basis.
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