konsernitilinpäätö

A konsernitilinpäätös, or consolidated financial statements, is a financial report that presents the financial performance and position of a parent company and its subsidiaries as if they were a single economic entity. This consolidation process combines the individual financial statements of all group companies, eliminating intercompany transactions and balances to provide a true and fair view of the group's overall financial situation. The purpose of a konsernitilinpäätös is to offer stakeholders, such as investors, creditors, and regulators, a comprehensive understanding of the group's profitability, assets, liabilities, and cash flows.

The preparation of a konsernitilinpäätös involves several key steps. First, all subsidiaries, those companies in which the parent company has control, are identified. Then, their individual financial statements, typically including a balance sheet, income statement, statement of cash flows, and statement of changes in equity, are gathered. Intercompany transactions, such as sales between group companies, loans, and dividends, are eliminated to avoid overstating the group's revenues and profits. Similarly, any unrealized gains or losses on transactions between group companies are removed. Non-controlling interests, which represent the portion of ownership in subsidiaries not owned by the parent company, are also separately identified and presented. The final consolidated financial statements are prepared in accordance with relevant accounting standards, such as International Financial Reporting Standards (IFRS) or national GAAP, to ensure comparability and transparency.