Historical Development and Objectives of the Consolidated Financial Statements

Development of the holding companies caused a need for a new form of financial reporting that would allow internal and external users to gain view into the financial and profitable position of the group as a whole. The paper deals with the evolution and history of implementation of the consolidated financial statements, with a focus on the USA and the UK experiences. The legal and regulatory framework within the companies have prepared consolidated accounts is also considered. Today, the consolidated financial statements are widespread and accepted in the financial and accounting practices. They are primarily used as a source of information about the asset, financial and profitable position of the group, but can also be used as a basis for the distribution, basis for taxation and management. Each of these tasks is explained in more detail in the pape