What is the purpose of consolidation financial statements?

Consolidated financial statements give a high-level overview of the company’s financial performance. This is essential information for management teams, shareholders, investors, lenders and financial journalists. Auditors also use these statements to ensure the organisation is complying with legislation and regulations. 

In a wider sense, accurate and timely consolidated financial reporting is about much more than the consolidated financial statements needed for compliance. It gives leadership teams a detailed view of, for example, the best and worst-performing business units or products, and can help them to identify risks and opportunities.