What is the difference between income statement and balance statement?
The balance sheet reports assets, liabilities, and equity, while the income statement reports revenues and expenses that net to a profit or loss. They use the income statement to decide whether a business is generating a sufficient profit to pay off its liabilities.
What is the difference between condensed and consolidated financial statements?
A consolidated balance sheet provides information about a company and all its subsidiaries in a single document. A condensed sheet boils all balance sheet information down to a few lines.
What does condensed consolidated income statement mean?
Condensed Consolidated Financial Statements means the unaudited financial statements of the Company, including the Statement of Financial Position, the Statement of Comprehensive Income, the Statement of Cash Flows, the Statement of Changes in Equity and associated notes; Sample 1. Sample 2.
What is the difference between income statement and statement of comprehensive income?
Aside from the income statement, comprehensive income is also included in the statement of comprehensive income. Both cover the same time period, but the statement of comprehensive income has two major sections: net income (derived from the income statement) and other comprehensive income (e.g., hedges).
What is the difference between balance sheet income statement and cash flow?
A balance sheet is a summary of the financial balances of a company, while a cash flow statement shows how the changes in the balance sheet accounts–and income on the income statement–affect a company’s cash position.
What is the difference between consolidated and consolidating?
Consolidating financial statements is the accounting process that ultimately leads to consolidated financial statements. Both concepts are distinct — one refers to a process, whereas the other is the final result.
What is the difference between combined and consolidated?
In a consolidated presentation, there is a parent company that has a controlling interest in one or more subsidiary entities and/or is the primary beneficiary of one or more VIEs. Conversely, a combined presentation is appropriate when two or more entities are under common control, but no actual parent company exists.
What does condensed balance sheet mean?
A condensed balance sheet is a statement of changes in financial position that is presented in a highly aggregated format. A potential problem with the condensed balance sheet format is that the level of summarization hides information that might otherwise have been visible if additional line items had been presented.
When should you consolidate financial statements?
Consolidated financial statements are used when the parent company holds a majority stake by controlling more than 50% of the subsidiary business. Parent companies that hold more than 20% qualify to use consolidated accounting. If a parent company holds less than a 20% stake, it must use equity method accounting.
What do you mean by condensed financial statement?
Condensed financial statements are a summary form of a company’s earnings statement, balance sheet and cash flow statement. These statements are created to provide a quick overview of the company’s financial status.
What’s the difference between a condensed and consolidated balance sheet?
A consolidated balance sheet provides information about a company and all its subsidiaries in a single document. A condensed sheet boils all balance sheet information down to a few lines.
How are consolidated financial statements different from full financial statements?
Consolidated financial statements will present the same overall financial picture of the company as the full financial statements, but items that would normally be several line items in the full version will be condensed down to one line for brevity.
What should be included in a condensed statement of comprehensive income?
The most important part of the condensed statement of comprehensive income is the income statement. The income statement provides details on revenues and expenses, including payable taxes and interest charges. The main purpose of an income statement is to present net income.