What are consolidated financial statements?

The parent company can decide to include the financial statements of its subsidiaries in its own financial statements. These combined financial statements are called consolidated financial statements. The subsidiary then, regardless of its size, only has to draw up a balance sheet and a (unspecified) profit and loss account. To exercise this right, the parent company has to register a so-called ‘403-declaration’ with the Chamber of Commerce. When the ‘403-declaration’ has been registered, the parent company will be jointly and severally liable for the debts of the subsidiary.

Related Questions

Who has to draw up the financial statements? Who has to check them? Whose approval is needed before publishing?
If a company is obligated to draw up an annual report, depends on the size of the company. What is the content of the annual report?
Every year your company has to disclose its financial statements. Which information do the financial statements have to contain?
What is the procedure for publishing the financial statements and the annual report? How much time does the company have for this procedure?
The requirements for the financial statements depend on the size of the company.