FINANCIAL'MANAGEMENT'
CHAPTER'4
1. Consolidated Financial Statements:
- Definition: Consolidated monetary statements combine the
economic outcomes of a parent organization and its subsidiaries
into a unmarried set of economic statements.
- Purpose: Provides a comprehensive view of the economic
function and overall performance of the complete institution of
groups.
2. Interim Financial Statements:
- Definition: Financial statements organized for a length shorter
than a full financial year, frequently protecting a quarter or six
months.
- Purpose: Provides well timed facts for selection-making
between annual reports.
3. Segment Reporting:
- Definition: Companies file monetary facts for exceptional
segments in their business, inclusive of geographical places or
product lines.
- Purpose: Helps stakeholders understand the performance of man
or woman commercial enterprise segments.
4. Pro Forma Financial Statements:
- Definition: Pro forma monetary statements are hypothetical or
projected financial statements based on sure assumptions or
occasions.
- Purpose: Used for planning and decision-making, especially
while comparing the capacity impact of unique events or
changes.
