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Combined financial statements are used where the entities are under common control but do not have parent-subsidiary relationship. One of the examples which we can use here is, combined financial statements based on Investor Interest. Consolidated financial statements are presented where there is a parent company with wholly or majority owned subsidiaries s one enitity, therefore, equity of subsidiaries is not added instead a controlling interest (if any) is subtracted from equity of the parent company during consolidation workings. Whereas in Combined financial statements, equity of the entities which are being combined (may or may not be subsidiaries) are added.
The Difference between Consolidated Financial & Combined Financials are as follows :
Consolidated :
Consolidated financial statements prepare one financial statement for the parent company that includes all of the companies combined. The individual companies don't report their financial statements separately from the parent company. A consolidated financial statement shows only the health and growth of the parent company while hiding any potential problems in the smaller companies from investors and the Internal Revenue Service. Companies are required to turn over all financial documents and accounting to the parent company to perform the consolidated report.
Combined :
Combined financial statement requires each company within a parent company to prepare and present their financial statements. The combined statement shows all of the companies under the parent company on one document, without all the data being consolidated into one reporting. Stockholders are able to view the subsidiaries' financials or look at the parent company as a whole. The process of preparing a combined financial statement takes longer than creating a consolidated financial statement. This is the result of the reporting process being accomplished twice for a single reporting period.
