Consolidated financial statement
A consolidated financial statement is a consolidated annual financial statement of all companies included in a group for balance sheet bookings, as well as in the profit and loss statement. Those included are all companies managed or decisively influenced by the holding company of the group (basis of consolidation). Because various interrelationships involving goods and services exist between related companies making up a group, their individual financial statements are of limited significance. According the group statement serves the purpose of presenting an objective picture of the asset, financial and profit positions of the group. For this reason, the group is fictionally represented in such a way as if it were formally a single company according to the one-entity theory.
A consolidated financial statement has a purely informative character and is neither the basis for calcuation of dividend disbursement, nor used to assess taxation.