What is a Consolidated Financial Statement?
A consolidated financial statement is a report of financial position and performance of a parent company and its subsidiaries as a single entity. It is an essential tool for investors, analysts, and other stakeholders to assess the overall financial position and performance of a group. Consolidated financial statements are particularly significant in the context of […]
What does mean reporting period in accounting
The reporting period, also known as the accounting period, refers to the specific timeframe for which a company’s financial performance and position are measured and reported. This timeframe serves as the foundation for a company’s financial statements, including the income statement, balance sheet, and cash flow statement. Common reporting periods Annual: Most companies follow the calendar […]
What is Meant By Impairment of Assets
In simple terms, an impaired asset is one whose market value has fallen below its value listed on the company’s balance sheet. Think of it as a valuable painting fading or a fancy smartphone becoming obsolete. These assets, once prized possessions, no longer command the same price they used to. Similarly, companies hold various assets […]