Consolidated Financial Statements
Consolidated financial statements present the financial position and performance of a parent company and its subsidiaries as if they were a single economic entity. This is more than a simple aggregation exercise as there must be elimination of inter company results and balances, alignment of accounting treatment between all entities, conversion of foreign currency statements into the presentation currency, where applicable, and then separate presentation of the position and performance of minority interests, when subsidiaries are not fully owned by the parent. In some cases a consolidated cash flow statement and statement of change in equity are also required. The notes to the consolidated financial statements provide more information which is essential to the understanding of the Group’s position and performance and endeavor to show the risks and opportunities that the Group is exposed to.
Integrated Reporting
Integrated reporting is a process founded on integrated thinking that leads to a periodic report illustrating value creation over time and the narrative related to this objective. It involves a concise communication about the organization’s strategy, governance, performance and prospects in the context of its external environment and how this will lead to value creation over the short, medium and long terms. Integrated reporting is new and in its infancy, yet is being supported by many large international companies who see it as a means of articulating strategy to investors as well as all other stakeholders. Evolving from separate sustainability reporting, integrated reporting is supported by the PRI (Principles for Responsible Investment) and has been commended for its value in being able to communicate how the organization develops all its capital – human, environmental as well as financial. A B GRAY is keen to support its clients help develop integrated reporting if appropriate.
www.integratedreporting.org
www.globalreporting.org