Difference Between Balance Sheet and Consolidated Balance Sheet

A Balance Sheet is a document of the financial situation of a company, while a Consolidated Balance Sheet is a statement showing the financial status of more than one company in the same group taken together.

1. What is difference between consolidated and unconsolidated balance sheet?
2. What is a consolidated sheet explain with an example?
3. What is consolidated and standalone balance sheet?
4. What is the difference between consolidated and consolidating financial statements?
5. How is consolidated balance sheet prepared explain?
6. What is the purpose of consolidated financial statements?
7. What are the advantages of consolidated financial statements?
8. Who is required to prepare consolidated financial statements?
9. How is consolidated profit distributed?
10. What are the rules of consolidation?
11. What is standalone and consolidated profit?

What is difference between consolidated and unconsolidated balance sheet?

The primary difference between Balance Sheet vs Consolidated Balance sheet is that Balance sheet is one of the financial statements of the company which presents the liabilities and the assets of the company at a particular point of time whereas Consolidated Balance Sheet is the extension of the balance sheet in which ...

What is a consolidated sheet explain with an example?

A consolidated balance sheet presents the assets and liabilities of a parent company and all its subsidiaries on a single document, with no distinctions on which items belong to which companies. ... For example, in the asset section, accounts receivable will list the total amount of receivables held by all three companies.

What is consolidated and standalone balance sheet?

The main difference between consolidated and stand-alone financial statements is that the consolidated form reports all activities of a company and its subsidiaries as a combined entity, while standalone financial statements report these findings as a separate entity.

What is the difference between consolidated and consolidating financial statements?

A combined financial statement is different from a consolidated financial statement in that it treats each subsidiary as a separate entity on paper, as it is in actual life. The combined financial statement reports the finances of the subsidiaries and the parent company separately, but combined into one document.

How is consolidated balance sheet prepared explain?

A consolidated balance sheet is usually prepared by the business operating as a group of companies that have more than one subsidiary and it portrays the combined details of assets and liabilities.

What is the purpose of consolidated financial statements?

The purpose of consolidated statements is to present, primarily for the benefit of the shareholders and creditors of the parent company, the results of operations and the financial position of a parent company and its subsidiaries essentially as if the group were a single company with one or more branches or divisions.

What are the advantages of consolidated financial statements?

Increased financial strength: As the financial resources of the combined units are merged together, the combined unit has increased financial resources. The size of the Balance Sheet increases and the ability of the company to raise funds improves.

Who is required to prepare consolidated financial statements?

In the present regime of Act, 2013, Section 129(3) requires a company having subsidiary(s) to prepare consolidated financial statement of all the subsidiary(s) in the same form and manner as that of its own and to lay such consolidated financial statement before the Annual General Meeting of the company for adoption.

How is consolidated profit distributed?

The steps for consolidating the income statements are as follows: (1)Add together the revenues and expenses of the parent and the subsidiary. If the subsidiary is acquired part way through the year all the revenues and expenses of the subsidiary must be time apportioned during the consolidation process.

What are the rules of consolidation?

Consolidation Rules Under GAAP

The general rule requires consolidation of financial statements when one company's ownership interest in a business provides it with a majority of the voting power -- meaning it controls more than 50 percent of the voting shares.

What is standalone and consolidated profit?

Standalone profit is the profit associated with the operation of a single segment or division within a firm. This contrasts with consolidated profit, which measures the profit of a firm as a whole.