Konsernitaso

Konsernitaso is the level at which a corporate group presents a unified view of its financial position and performance. It aggregates the parent company and its subsidiaries into a single economic entity for reporting and governance purposes.

The concept applies when a company has control over other entities, typically through majority ownership or other arrangements that give the parent the power to govern financial and operating policies. Subsidiaries are included in the konsernitaso; jointly controlled entities and associates may be treated separately depending on influence.

Consolidation process: the konsernitilinpäätös (consolidated financial statements) combines assets, liabilities, equity, income and expenses of all subsidiaries. Intra-group balances, transactions and profits are eliminated to avoid double counting. Non-controlling interests are recognized in equity and in profit for the period. Different consolidation methods may be used: full consolidation for subsidiaries; equity method for associates or joint ventures; proportionate consolidation in some jurisdictions is rare today.

Use and purpose: konsernitaso provides a holistic view of the group's financial health, supports central planning and financing, and serves external reporting to shareholders, regulators and lenders. It also standardizes reporting policies across the group, aligning accounting policies and currency translation in multi-country groups.

Relation to standards and governance: in Finland and many other jurisdictions, consolidated reporting is governed by national accounting rules or IFRS. Central management functions—treasury, risk, tax—often operate at konsernitaso, coordinating strategy and resource allocation.

Limitations: the konsernitaso can mask the performance of individual subsidiaries and may be affected by differences in accounting policies, intra-group transactions, and currency effects. Users should examine both konsernitaso results and subsidiary-level information for a complete view.