What are the consolidated financial statements?

Companies issue four basic financial statements:

1. Balance Sheet
2. Income Statement
3. Statement of Cash Flows
4. Statement of Stockholders' Equity

Companies also must present a Statement of Comprehensive Income. Most companies include this in the Statement of Stockholders' Equity.

"Consolidated" financial statements include more than one affiliated company. For example, if Company A owns all of Company B, then the two companies together will present consolidated financial statements, presented as if both companies were really one company. Each line item is presented for all companies. For example, Cash presents total cash for all affiliated companies. Sales presents sales for all affiliated companies, added together.