Meaning and consolidation
Consolidated financial statements show the assets, liabilities, equity, results and cash flows of a parent organization and its subsidiaries as one economic entity. IFRS 10 links the basis of consolidation to control and provides certain exceptions. Source: **curr-stat-ifrs10**, About.
This is not simply adding together the public tables of legal entities. Intra-group relationships require appropriate consolidation procedures; otherwise, an internal sale may be counted again incorrectly as external revenue. Establish the perimeter before calculating ratios. Related reading: [financial statements roadmap](/guides/financial-statements-roadmap/) and [balance sheet](/guides/balance-sheet/)
Separate statements and limits
Separate financial statements answer a different question and have their own rules for presenting investments. Source: **curr-stat-ias27**, About. Do not mix group profit with the equity of one legal entity. A change in the number of included organizations can explain growth in indicators without an improvement in the comparable business.