Consolidated financial statements

What is meant by consolidated financial statements? When and why are consolidated financial statements necessary?

looking for a response in about 150 or so words please

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Consolidated financial statements are referred as the collective financial statements of a company together with its divisions, sub organizations and subsidiaries. For instance, assume that XYZ Company is a holding company which owns other four companies that is Company A,B,C and D. Thus, each of these companies pays their royalties….

APA

168 words