Assessment of the nature and intensity of the operations within the group of companies

• Main Authors: Andrić Mirko, Vuković Bojana
• Format: Article
• Language: English
• Published: University of Novi Sad - Faculty of Economics, Subotica 2015-01-01
• Series: Anali Ekonomskog fakulteta u Subotici
• Subjects: group of companies; elimination; the nature and intensity of operations
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2015/0350-21201534193A.pdf
• ISSN: 0350-2120; 2683-4162

Consolidated financial statements present the financial position, results of operations and conditions of the group of companies as a single reporting entity. The preparation of consolidated financial statements is based on the synthesis of all individual financial statements of companies included in the group with the elimination of the effects on the basis of mutual business relationships and transactions. The analysis conducted within the elimination of group transactions and balances is intended to indicate the intensity and nature of operations of the group. Adequate information for consideration of economic interest, nature of business and the interests of the future of the business combination of companies is provided on this basis. By creating an adequate information base, existing action is reviewed and further action is taken in dealing with a group of companies.