Consolidated financial statements are prepared when a company owns more than 50% of the common stock of another company.
More about Consolidated financial statements:
The definition of consolidated financial statements in International Accounting Standard 27 "Consolidated and separate financial statements"
In International Financial Reporting Standard 10 "Consolidated financial statements" is "financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity."
While public firms must disclose financials in accordance with the Financial Accounting Standards Board's Generally Accepted Accounting Principles, private entities have very few reporting responsibilities.
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