What is net consolidated revenue

The organizational structure of companies may include several subsidiaries or affiliates. For such organizations, revenue can be measured separately for each company or calculated consolidated revenue, including total financial results.

Consolidated revenue is revenue that is free from financial statements. It includes the results of activities of parent and subsidiary companies that are in established legal and financial relationships. Such a division of business in most cases is due to economic feasibility and the desire to reduce tax costs, as well as to reduce risks in doing business and diversify activities.

Consolidated revenue is shown in the consolidated statements.

The concept of consolidated reporting

The consolidated financial statements include a group of interconnected companies that represent a single economic entity. It contains the property and financial condition of the group of companies.

A feature of such reporting is the unification of legally independent companies, their income, assets and liabilities into a separate financial reporting system. Now it is provided by almost all holdings and groups of companies.