What are consolidated and separate financial statements?

Consolidated financial statements are a summary of the financial and business situation of a group consisting of many companies controlled by a parent company (according to accounting standard No. 25 issued in Decision No. 234/2003/QD-BTC).

Accordingly, this report is prepared on the basis of consolidating the reports of the parent company and its subsidiaries.

The individual financial report is an information system that shows the financial and business situation of the parent company.

In there:

- Control: The right to govern the financial policies and operations of an enterprise in order to obtain economic benefits from those activities.

- Parent company: A company in one of the following cases according to Clause 1, Article 195 of the Enterprise Law 2020:

+ Own more than 50% of the charter capital or total common shares of that company;

+ Have the right to directly or indirectly decide to appoint a majority or all members of the Board of Directors, Director or General Director of that company;

+ Has the right to decide on amendments and supplements to the Charter of that company.

- Subsidiary: An enterprise controlled by the parent company, falling into one of the above cases.

- Group: Includes parent company and subsidiaries.