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Clarification request

LAKSHMI KANTH (TAX CONSULTANT) (449 Points)

04 October 2020

Sir, when big corporates makes annual audited financial statements, they make two kinds of reports 1. consolidated balance sheets- ok self explanatory 2. standalone balance sheet - what is this standalone balance sheet ?

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 04 October 2020

Simply, standalone balance sheet is balance sheet as we prepare balance sheet of Company.( only self assets and liabilities includes, and investment in subsidiary( i.e other groups Company) is shown as just investment)

Consolidated balance sheet means balance sheet of whole Group. (All assets or all liability included including of subsidiary companies)

So, We can say that standalone balance sheet is company's balance sheet whereas Consolidated balance sheet is Group's balance sheet