Consolidated Financial Statements

What is Financial Statement?

The word consolidated financial statement is common in accounting, business, and finance world industry but not on the layman or common person. So, what is consolidated financial statement? But before we will answer that question let us understand first what is financial statements? We can’t understand, talk and discuss consolidated financial statements without first talking and knowing the word financial statement because naturally and generally they are similar only the scope, purpose or form differs but you should not confuse and mixed the two.

Financial statements are an official record of the financial activities and positions of the business, companies, entity, individual, and even the government institutions. Relevant financial data and information is presented in a well-structured manner and in a form easy to understand even by the ordinary readers of the financial statements. The users and beneficiaries of the financial statements are not only limited to owners, investors, and stockholders but also includes the government, employees, unions, creditors, debtors, banks, and credit institutions. They use the information’s written in the financial statements to assess how the company are performing in terms of managing the business whether it losing or gaining profit and can continue its operations. The three basic financial statements are balance sheet (statement of financial position), income statement (statement of financial performance or profit and loss, cash flows (statement of cash flows), and statement of retained earnings. The usual information that can be seen in financial statements are cash, accounts receivables, accounts payable, retained earnings, share capital, sales revenue, expenses, cost of sales, net income, and tax expense. It is very important that any companies or business should have financial statements as it is a minimum requirement, this is where the vital information of the financial activities of the company shown, and it is the documents that banks ask if the companies files for bank loan.

Below three image illustrations are the sample of Consolidated Financial Statements. These three images below are the three major example of Consolidated Financial Statements. Credit to Al Jaeera Steel Products Company SAOG.

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What is Consolidated Financial Statement and How it is Related to Financial Statement?

Consolidated financial statements are the financial statements of a group of companies in which their assets, liabilities, equities, sales, expenses, incomes, and cash flow activities of the parent company and its multiple subsidiary are presented as those of a one single economic entity per IAS 27 (International Accounting Standard 27) and IFRS 10 (International Financial Reporting Standard 10) requirements. Simply to say consolidated of financial statement is a combination of different financial statements of the parent company and its subsidiaries inputted as one with doing some eliminations as necessary to avoid double recognition of same inter-company transactions. In preparing consolidated financial statement there are two basic procedures to be followed. First, you need to cancel out all the entered items that are accounted as assets in one company and liabilities in another company then add together all uncancelled items this activity called inter-company reconciling items.

The relationship and similarities of financial statements and consolidated financial statements were they have both balance sheet (statement of financial position), income statement (statement of financial performance or profit and loss), cash flows (statement of cash flows), and statement of retained earnings. They presented almost the same with the financial statements but will differ naturally the figures because consolidated financial statement is the combination of all financial statements of parent company and its subsidiaries while financial statements may either just a financial statement of one subsidiary or the parent company without yet the input of the other. Simply to say financial statements is financial information activities of one company while consolidated financial statement is the combined financial information activities of multiple companies combined as one single entity.

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OUR ANALYSIS OF 10 TOP PAID BLOGGERS 2017

  1. Huffington Post – $14,000,000 per month
  2. Endgadget – $5,500,000 per month
  3. Moz – $4,250,000 per month
  4. TechCrunch – $2,500,000 per month
  5. Mashable – $2,000,000 per month
  6. CopyBlogger – $1,000,000 per month
  7. Perez Hilton – $575,000 per month
  8. Gizmodo – $325,000 per month
  9. Smashing Magazine – £250,000 per month
  10. Tuts+ – $175,000

Figures accurate as of March 2017.

We’ve analysed this list and picked out some key learnings about what makes blogs successful:

Blogging is a long game

There’s no escaping the fact that finding success with a blog takes time. Tuts+ has been going for ten years, The Huffington Post for twelve, CopyBlogger eleven and Mashable for twelve. Gizmodo has been on the go since 2002! For those of you who have blogging ambitions on a marketing-leading scale, the lesson here is that you’ll have to be in it for the long haul.

That’s not to say you can’t achieve excellent results in the medium-term. Mashable reached 2 million readers in the space of just 18 months – but the site’s founder Pete Cashmore did put in 20-hour days writing tech articles over the course of the blog’s first year.

Personality pays
One of the things that jumps at us about this list of high-earning bloggers is the vast number of online influencers and personalities associated closely with the blogs – e.g. Arianna Huffington, Moz’s Rand Fishkin, and Perez Hilton. These people have all become famous thanks to their blogs – but at a certain point that dynamic evolved, and their individual celebrity became a factor in the sustained success of the blogs.

This suggests that putting personalities to the fore in your blog content won’t just bring positives for the personalities themselves; it may also prove to be traffic- and revenue-driving in the long-run.

Tech and marketing blogging is lucrative – and competitive

Eight of the ten high-earning blogs on Forbes’ list produce content about technology, marketing and IT. There exists hugely popular and high earning blogs in other fields too, but this does indicate that digital and marketing content has excellent earning potential. If you intend for your blog to generate a high level of revenue, you should carefully consider whether the subject matter you’ll be covering is easily monetizable.

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