Combined Financial Statements

Question 1

What is a Combined Financial Statement?

Answer 1

combined financial statements are the product of bringing together the financial statements of two or more related firms

Question 2

When is a combined financial statement appropriate?

Answer 2

Under common control, common management or for unconsolidated subsidiaries

Question 3

What is the difference between a consolidated financial statement and a combined financial statement?

Answer 3

the resulting combined financial statements do not represent the financial position, results of operations or cash flows of a single controlling entity, but rather the aggregate results of the combined companies after eliminating intercompany account activity and balances