konsernitasoisen

Konsernitasoisen is a Finnish term that translates loosely to "corporate consolidation" or "group-level consolidation." It refers to the process of combining the financial statements of a parent company and its subsidiaries into a single set of financial statements for the entire group. This consolidation is a standard accounting practice required for companies that have control over one or more other entities.

The primary purpose of konsernitasoisen is to present a true and fair view of the financial position and performance of the entire economic entity, rather than just individual companies. This involves eliminating intercompany transactions and balances, such as sales between parent and subsidiary or loans between group companies. Without these eliminations, the consolidated financial statements would overstate the group's revenues, expenses, assets, and liabilities.

In Finland, as in many other countries, the requirements for preparing consolidated financial statements are governed by Finnish accounting legislation and international financial reporting standards (IFRS) if applicable. The consolidated financial statements typically include a consolidated balance sheet, income statement, cash flow statement, and statement of changes in equity, along with accompanying notes. These statements provide crucial information for investors, creditors, and other stakeholders to assess the overall health and performance of the corporate group.