koncernbalance

A koncernbalance, or consolidated balance sheet, is the financial statement that presents the assets, liabilities and equity of a corporate group as if it were a single economic entity. It combines the statements of the parent company and its subsidiaries, after eliminating intercompany balances and transactions, such as intercompany loans or sales. In German usage, the term Konzernbilanz is commonly used for the consolidated balance sheet.

The primary purpose is to reflect the overall financial position of the group and its ability to meet obligations, rather than the position of individual entities. It is typically part of the Konzernabschluss (consolidated financial statements) and is used by investors, lenders and regulators to assess the group's liquidity, solvency and capital structure.

Preparation follows applicable accounting standards, most commonly IFRS or national GAAP. Full consolidation is applied to subsidiaries controlled by the group; associates and joint ventures are accounted for using the equity method or, in some standards, proportionate consolidation. Intercompany profits and balances are eliminated, and foreign subsidiaries are translated into the reporting currency with exchange rate differences recognized in equity or profit as appropriate. Non-controlling interests are disclosed within equity.

The balance sheet is typically organized into current and non-current assets, current and non-current liabilities, and equity, including a line for non-controlling interests. It differs from the standalone balance sheets of individual group entities because it aggregates and adjusts those statements to remove intragroup effects.