Document Type : Review article
Author
Bachelor's student at Kharazmi University (Kharazmi Faculty of Financial Sciences)
Abstract
Large companies, with the aim of expanding the scope of their economic activities and in line with responding to various technical, financial and scientific needs, try to expand and develop their capabilities by purchasing shares of smaller companies. With the expansion of the group of companies and the emergence of investment companies, the issue of consolidating the financial statements of these economic units and consolidated accounting is raised.
According to Iranian Accounting Standard No. 18 under the title of Consolidated Financial Statements and Investment Accounting in Subsidiary Business Units, the preparation and presentation of consolidated financial statements has been mandatory since 1380.
Consolidated accounting is a popular choice for large commercial companies, because the goal of these organizations is to add a value to the set of constituent values, which often leads to the combination of organizations with each other.
By using consolidated financial statements, it is possible to consider the amount of profit and loss of the company and adopt an appropriate plan for the company's progress and prevent its losses and bankruptcy. Auditors of every company must prioritize consolidated financial statements and make them available to shareholders, investors, and the government at the appropriate time without negligence or carelessness.
Keywords
Main Subjects
)