Consolidated vs consolidating balance sheet
On consolidation, revenues will NOT be proportioned to respective stake-holding in the company.
This method can only be used when the investor possesses effective control of the investee or subsidiary which often, but not always, assumes the investor owns at least 50.1% of the subsidiary’s shares or voting rights.
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Standalone Financial Statements will represent the numbers of only Company A.
While Consolidated Financial Statements represent the combined results of all 3 companies : A B C.
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Parent Company has recently just begun operation and, thus, has a simple financial structure. Parent, the sole owner of Parent Company, injects $20M cash into his business. As such, Parent Company’s balances are now 20M in assets and 20M in equity.