Konzernabschlüsse

Konzernabschlüsse, often translated as consolidated financial statements, are financial reports prepared by a parent company that combine the financial statements of all its subsidiaries. This aggregation provides a comprehensive view of the entire economic entity, presenting it as a single operating unit. The primary purpose is to reflect the true financial position, performance, and cash flows of the group as a whole, rather than just the individual legal entities within it.

The preparation of Konzernabschlüsse is typically mandated by accounting standards such as International Financial Reporting Standards (IFRS) or generally accepted accounting principles (GAAP) in various countries. These standards dictate the principles and methods for consolidation, including the elimination of intercompany transactions and balances to avoid double-counting. Key components of a Konzernabschluss include the consolidated balance sheet, consolidated income statement, consolidated cash flow statement, and consolidated statement of changes in equity.

Consolidation is generally required when a parent company has control over a subsidiary. Control is typically defined as the power to direct the relevant activities of the subsidiary. The process involves aggregating the assets, liabilities, equity, income, and expenses of the parent and its subsidiaries line by line. Any ownership interests held by non-controlling parties are presented separately as non-controlling interests. The elimination of transactions between group companies, such as sales, loans, and dividends, is crucial to ensure that the consolidated figures represent the economic reality of the group's transactions with external parties.