Consolidated Financial Statements: Financial information presentation (in which the assets, equity, liabilities, and operating accounts of a company can be seen) and its subsidiaries are combined and shown as belonging to a single reporting entity.

These are the rules and procedures in regard to preparing consolidated financial statement;

– Financial statement items of a group company should be aggregated separately.
– Goods and service sales done between group companies are deducted from gross sales and cost of sales. Profit and loss generated from purchase and sale done within group should be eliminated also by applying it to corrected parallel stocks.
– Income and expense items generated from transactions done within the group are eliminated from each other like amortizations, interests and dividends.
– “Allowance for taxation on current period profit and other legal liabilities” related to all consolidated partnerships should be involved in consolidated financial statements.
– Profit belonging to non-community shares of community’s shareholders should be presented as “Minority Shareholders’ Profit and Loss” and as a discount item in financial statement.

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