What are Group Financial Statements?

Group financial statements are financial statements that include the financial information for more than one component. A component is an entity or business activity for which financial information is separately prepared, and which is included in the group financial statements. A component is most commonly a subsidiary, but it may also be a function, process, product, service, or geographical location, or even an investment accounted for under the equity method. Group financial statements are prepared in order to give financial statement users a more precise view of the financial results, financial position, and cash flows of a group of entities or business activities.

Related AccountingTools Course

Business Combinations and Consolidations

FAQs

What Standards Govern Group Financial Statements?

Group financial statements are primarily governed by IFRS 10 Consolidated Financial Statements under international standards and ASC 810 Consolidation under U.S. GAAP. These standards define when control exists, how subsidiaries should be consolidated, and the required disclosures. They ensure consistency and comparability in reporting across companies and industries.

Consolidated Financial Statements

General Purpose Financial Statements

The Qualitative Characteristics of Financial Statements

Types of Financial Statements