Consolidated financial statements are financial statements of an entity with multiple divisions or subsidiaries. ... However, the Financial Accounting Standards Board defines consolidated financial statement reporting as reporting of an entity structured with a parent company and subsidiaries.

What is included in a consolidated financial statement?

Consolidated financial statements are financial statements that present the assets, liabilities, equity, income, expenses and cash flows of a parent and its subsidiaries as those of a single economic entity.

What is not included in consolidated financial statement?

A Subsidiary must be excluded from the consolidation when:

In a consolidated financial statement, investments in such subsidiaries must be accounted for as per AS 13 – Accounting for Investments.