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In general, the Balance Sheet is prepared at a specific date which is usually the end of the accounting period i.e. However, the company may also prepare it – quarterly or semi-annually.

When the assets and equity & liabilities of a holding company and its subsidiaries are put together in a single document, then the document is known as Consolidated Balance Sheet.

The consolidated balance sheet represents a parent company and the subsidiaries it controls.

consolidating balance sheets accounting-57

A company which holds more than 51% of total share capital or it controls the composition of its Board of Directors (BOD) i.e.

as per Schedule VI of the Indian Companies Act, 1956, but there is no distinction made as to which asset or liability belongs to which particular company.

It is a compact and true picture of the financial position of the whole group.

It plays a pivotal role in indicating the financial health of the entity, to help the users of the statement to take rational decisions.

It is not exactly same as a consolidated balance sheet.

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