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It is well known that the aim of financial reporting is to provide the users (owners, investors, creditors, stock analysts, state authority et al.) with adequate representation of enterprise financial performance and activity, for them to be able to make managerial decisions. When one enterprise control the other one there is necessity in financial statements consolidation, because it is more logical to analyze the information about the whole group in general regardless of the number and locality of corporate persons, which are in this group.

 

Financial statements consolidation of the group is based on unification of information that is found in reports of associated and affiliate companies. But consolidation doesn’t come only to making up analogous assets, obligations, funds, profits and costs, process of financial statements consolidation provides for the whole range of special calculations and procedures. At the same time on each stage there is the process when financial statements of some companies and certain additional information transfer into complex of consolidated financial statements which meets these or other standards.

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