Consolidated Financial Statements of Parent Entity and Subsidiaries

The increasingly widespread occurrence of business mergers by companies is intended to increase capital, business competition, have international networks, and expand and maintain their business. The financial records of companies that have consolidated are more complicated than those of companies that are independent. In the consolidated financial records, the parent entity (which controls) and the subsidiary entity (which is controlled) are identified. The results of the discussion explained that the consolidated financial statements are financial attachments of a business group presented as a single economic entity. Consolidated financial statements must be prepared by the parent entity or highest controller in a business group