Intercorporate Investments Consolidated Financial Statements Consolidated financial statements report the results of operations and financial condition of a parent corporation and its subsidiaries in one set of statements Basic Technique of Consolidation Consolidation involves two steps: aggregation and elimination Aggregation of assets, liabilities, revenues, and expenses of subsidiaries with the parent Elimination of intercompany transactions (and accounts) between subsidiaries and the parel Note: Minority interest represents the portion of a subsidiary's equity securities owned by other than the parent companyConsolidated financial statements report the results of operations and financial condition of a parent corporation and its subsidiaries in one set of statements Consolidation involves two steps: aggregation and elimination Aggregation of assets, liabilities, revenues, and expenses of subsidiaries with the parent Elimination of intercompany transactions (and accounts) between subsidiaries and the parent Note: Minority interest represents the portion of a subsidiary’s equity securities owned by other than the parent company Intercorporate Investments Consolidated Financial Statements Basic Technique of Consolidation