What is difference between consolidate balance sheet and balance sheet?

Banking & FinanceManagementCompanies/Organisations

The major differences between consolidate balance sheet and balance sheet are as follows −

Consolidate balance sheet

  • In case of subsidiaries companies, assets and liabilities are not mentioned separately.

  • It is difficult to prepare.

  • It reflects financial position of a firm and its subsidiary.

  • Assets (parent + subsidiary) = liabilities (parent + subsidiary) + shareholders’ equity+ minority interest.

  • It takes lot of time to prepare.

  • It is prepared by only companies holding shares in another company.

Balance sheet

  • In case of subsidiaries, assets and liabilities are mentioned separately.

  • It is easy to prepare.

  • It shows financial position of a firm to stakeholders.

  • Assets = liabilities + shareholders’ equity.

  • It takes less time to prepare.

  • It is prepared by all companies.

raja
Published on 24-Jul-2020 06:45:28
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