konserne

Konserne refers to a type of financial accounting technique that involves consolidating the financial statements of a parent company and its subsidiaries. This method is used to demonstrate the business activities of the group as a whole, rather than just that of individual companies.

In the context of financial accounting, a parent company is a company that has a controlling interest or majority ownership in another company, known as a subsidiary. The subsidiary company can be either a fully owned subsidiary or have a majority stake held by the parent company.

When using the konserne method, the financial statements of the subsidiary are combined with those of the parent company to produce a comprehensive view of the group's financial position and performance. This approach aims to provide a more accurate picture of the group's financial situation by eliminating intercompany transactions and balances.

The procedures for applying the konserne method involve several steps, including determining the presence of a controlling interest, identifying and ensuring separate financial statements for each subsidiary, eliminating intercompany transactions and balances, and reporting the results of consolidation in the financial statements of the parent company.

The use of konserne is regulated by various accounting standards and laws, such as the International Financial Reporting Standards and the company's home country regulations. It is primarily used by companies that operate a large number of subsidiaries or have a complex group structure, as it allows for the integrated presentation of financial information on a group level.