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Consolidated financial statement |
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Consolidated financial statement A financial statement that shows all the assets, liabilities, and operating accounts of a parent company and its subsidiaries. |
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A subsidiary wants to change to the FIFO method for both Federal income tax and consolidated financial statement purposes. Perhaps the biggest difficulties will be tied to the audit of a consolidated financial statement for the entire government. Auditing of multi national operations and compliance with Generally Accepted Accounting Principles of the United States ("GAAP") to allow a consolidated financial statement under GAAP would have likely led to the need to employ one of the "Big-4" accounting firms which the Board felt would have been unnecessarily expensive. |
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