Individual financial statements

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As part of the accounts of companies which is in establishing balance on the number of legally independent companies , which are recognized in the balance between the financial statements and the consolidated financial statements differed. The individual financial statements, which in Germany must be prepared according to the principles of proper bookkeeping (GoB) and HGB , only take one company into account. The balance sheet profit determined in the individual financial statements under commercial law forms the basis for the profit distribution. In the case of a stock corporation, the profit in the parent company's individual financial statements determines the amount of the dividend .

In contrast to this, in the consolidated financial statements, all companies to be included in the so-called consolidation group are combined into a fictitious company and, as part of the consolidation, adjusted for intra-group transactions. Capital market-oriented companies in the EU are obliged to prepare their consolidated financial statements in accordance with the International Financial Reporting Standards .