4Consolidated financial statements
4.1Purpose
In many cases, larger businesses do not consist of one legal company only but of many companies, i.e. business is conducted by a group of companies. Each of these companies may have (depending on the rules explained earlier) to prepare financial statements; these individual financial statements cover only the specific part of the group’s business.
To furnish information about the business of the entire group, groups are obliged (under certain conditions – see below) to prepare consolidated financial statements.
§ 297 sect. 3 requires that consolidated financial statements present the financial and performance situation of all group companies as if they were only one company (the so-called one-entity ...
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