# Consolidated financial statements

> The financial statements of a group presented as those of a single economic entity, with the parent's and subsidiaries' figures combined and intragroup items removed.

Source: https://finconsol.com/blog/glossary/consolidated-financial-statements/ (updated 28 October 2026)

## Why does it matter in a group?

Consolidated financial statements are the accounts that owners, lenders and boards of a group actually read. They add up the parent and its [subsidiaries](/blog/glossary/subsidiary/) line by line, then remove what the companies did with each other through [elimination entries](/blog/glossary/elimination-entry/), so the figures show dealings with outsiders only. A parent that controls other companies presents them in addition to its own statements, unless a narrow exemption applies.[1](#src-1) They are one set of statements for the group as a whole, so a reader does not need to open each company's accounts.

## A small example

A parent has revenue of GBP 5,000,000 and its subsidiary GBP 3,000,000. The parent sold services of GBP 400,000 to the subsidiary. Group revenue is 5,000,000 plus 3,000,000 less 400,000, which is GBP 7,600,000.

## Sources

## Sources

1. IFRS 10 [Consolidated Financial Statements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/), paragraphs 4 and B86 and Appendix A (defined terms).