Financial Consolidation Definition

Understand the Essence of Financial Consolidation by Understanding the Definitions

Consolidation simply means to put things together. But in the context of financial consolidation, the definition is significantly expanded. Host Analytics Reporting can help you understand the different components and parameter of financial consolidation. We can help you answer questions such as:

  • What is financial consolidation? – It is the process of collaborating the financial data of different departments and internal business entities
  • What is its purpose? – The entire purpose of collaborating financial data into financial statements is for the sake of a structured reporting
  • How is it done? – Financial data are collated in the form of assets, liabilities, and operating accounts of parent and subsidiary companies
  • How is financial consolidation with an acquisition different from a merger? – A financial consolidation allows acquired companies to function as individual entities while they report to the parent, but in a merger, the entities are completely absorbed
  • What are the methods of consolidation? – Accounting is the most commonly used method of consolidating the financial statements of an organization

Host Analytics’ helps you understand the necessity of financial consolidation in your organization and assists in streamlining your process.

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