consolidato

Consolidato is an Italian adjective and noun meaning consolidated or consolidated entity. It is used in several contexts to denote that different parts or elements have been merged, stabilized, or made to operate as a single unit. In finance and accounting, the term is most commonly found in the phrase bilancio consolidato, the consolidated financial statements of a corporate group.

In accounting, bilancio consolidato presents the financial position, results of operations, and cash flows of a parent company and its subsidiaries as if they were a single economic entity. The process requires the elimination of intercompany transactions and balances, so that only external relationships are reported. The consolidated financial statements reflect the group’s overall performance and financial health, and they are typically prepared under international IFRS standards or, for non-listed groups, national frameworks such as Italy’s OIC standards. They differ from the standalone bilancio d’esercizio, which covers only the parent company’s own results.

In corporate and legal practice, consolidation refers to the control exerted by a parent company over subsidiaries, enabling unified governance and reporting. Many jurisdictions require or encourage consolidation for groups that meet specific control thresholds, to ensure transparency and comparability for investors, creditors, and regulators.

Beyond finance, consolidato also appears in everyday Italian to describe physically stabilized or solidified materials or structures, such as soil or rock that has been compacted or hardened. The term derives from consolidare, meaning to strengthen or unite.