Consolidated Financial Statements

Consolidated financial statements are comprehensive financial reports that present the combined financial position and results of operations for a parent organization and its subsidiaries as if they were a single entity. These statements eliminate intra-group transactions and balances, ensuring that only external financial activities are reported. By consolidating assets, liabilities, revenues, and expenses, organizations provide a holistic view of their overall financial health. Nonprofits that control or significantly influence other entities, such as foundations or supporting organizations, are often required to issue consolidated financial statements to comply with accounting standards and donor expectations. Accurate consolidation is crucial for transparency, comparability, and informed decision-making among stakeholders.