konsernituloslaskelmassa

Konsernituloslaskelma, known in English as a consolidated income statement, is a financial report that presents the revenues, expenses, and profit of a parent company and its subsidiaries as if they were a single economic entity. This consolidation process is necessary when a parent company has control over one or more other companies, typically when it owns more than 50% of their voting stock. The primary purpose of a konsernituloslaskelma is to provide a comprehensive view of the overall financial performance of the entire group, rather than just the individual performance of each legal entity.

The preparation of a konsernituloslaskelma involves several key steps. First, the individual financial statements of the parent company and all its subsidiaries are gathered. Then, intercompany transactions, such as sales of goods or services between group companies, dividends paid within the group, and intercompany loans, are eliminated. This elimination is crucial to avoid double-counting revenues and expenses that occur within the group. Minority interests, representing the portion of a subsidiary's profit that does not belong to the parent company, are also calculated and presented separately.

The structure of a konsernituloslaskelma generally follows that of a standard income statement, starting with revenue and deducting various costs and expenses to arrive at a net profit or loss. Key line items typically include sales revenue, cost of goods sold, gross profit, operating expenses, operating income, finance costs, income tax expense, and profit attributable to owners of the parent. The report is essential for investors, creditors, and other stakeholders who need to understand the total profitability and financial health of the consolidated group.