Consolidate: What It Means in Business and Finance
In the income statement, eliminating intercompany sales and services prevents overstated revenue and expenses, reflecting the group’s true operational success. Similarly, the balance sheet excludes intercompany balances, accurately representing the group’s assets and liabilities. Proper treatment of non-controlling interest refines the equity section, highlighting the portion attributable to external shareholders. This transparency is essential for investors, creditors, and regulatory agencies, offering a clear view of the group’s financial integrity and efficiency. For o
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