konsolidert

Konsolidert is a Norwegian adjective meaning consolidated. It is used in accounting, finance, and public administration to describe a presentation or position that aggregates multiple legal entities or units into a single whole. The term implies that the parts are treated as a unified entity for reporting or budgeting purposes.

In accounting, konsolidert regnskap merges the financial statements of a parent company with its subsidiaries. The consolidated statements present assets, liabilities, equity, income, and expenses for the group as if it were a single entity. Intercompany transactions and balances are eliminated, and any non-controlling interests are shown separately within equity. Consolidation often uses the acquisition method, and currency translation adjustments may be required for foreign subsidiaries.

Standards and practice vary by jurisdiction. Consolidated financial statements are typically required under international standards such as IFRS for groups, while some entities may follow local GAAP. In IFRS, key guidance comes from IFRS 10 on control, IFRS 3 on business combinations, and IFRS 12 on disclosures. The consolidation process emphasizes presenting the economic reality of the group, rather than the legal structure alone.

Outside corporate finance, konsolidert is also used in public finance to describe consolidated budgets or accounts, for example within municipalities or the national government, where units are combined to show the overall fiscal position. The term can also appear in informal usage to describe the consolidation of multiple loans or debts into a single obligation.

Etymology: from the verb konsolidere, itself from Latin consolidare, meaning to make solid or unify.