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In financial accounting, consolidated financial statements provide a comprehensive view of the financial position of both the parent company and its subsidiaries, rather than one company's stand-alone position.In business, consolidation occurs when two or more businesses combine to form one new entity, with the expectation of increasing market share and profitability and the benefit of combining talent, industry expertise or technology.There may be amalgamations, either by transfer of two or more undertakings to a new company, or to the transfer of one or more companies to an existing company".Consolidation is the practice, in business, of legally combining two or more organizations into a single new one.Consolidation also refers to the merger and acquisition of smaller companies into larger companies.Consolidation involves taking multiple accounts or businesses and combining the information into a single point.Upon consolidation, the original organizations cease to exist and are supplanted by a new entity.

The management centers for customer, vendors, & inventory make it faster and easier to find information without running reports.: General Ledger, Accounts Receivable, Accounts Payable, Bank Reconciliation, Inventory, Sales Order, Purchase Order, Payroll, Job Cost.The taxation term of consolidation refers to the treatment of a group of companies and other entities as one entity for tax purposes.Under the Halsbury's Laws of England, 'amalgamation' is defined as "a blending together of two or more undertakings into one undertaking, the shareholders of each blending company, becoming, substantially, the shareholders of the blended undertakings.In business, consolidation or amalgamation is the merger and acquisition of many smaller companies into much larger ones.In the context of financial accounting, consolidation refers to the aggregation of financial statements of a group company as consolidated financial statements.Sage 50 Intelligence Reporting is included with a Business Care subscription.Organizing Your Information Setting Up a Worksheet Combining Financial Statements Eliminating Duplicate Values Community Q&A Many large companies are partially or entirely made up of smaller companies that they've acquired throughout the years.To consolidate is to combine assets, liabilities and other financial items of two or more entities into one.In the context of financial accounting, the term consolidate often refers to the consolidation of financial statements, where all subsidiaries report under the umbrella of a parent company.The companies' financial results, therefore, are consolidated on a single set of statements.Internally, the parent is free to treat the subsidiary as a completely separate entity, but it must consolidate its finances in statements prepared for outside observers, such as banks, regulators and potential investors.