METHODOLOGICAL BASES OF CONSOLIDATED FINANCIAL STATEMENTS

Yakubova Dilfuza Turgunovna,
Lecturer of the Department of
“Accounting”
of the ISFT Institute
dilya.yakubova89@gmail.com
ORCID 0009-0000-8718-4436
JEL classification: G18 G38
Abstract. The methodological framework for consolidated reporting includes the principles, rules and approaches used to combine financial data of subsidiaries and affiliates, as well as to eliminate intra-group transactions and mutual liabilities. The main principles of preparing consolidated reporting are: control, uniform accounting policy, elimination of intra-group transactions, and accounting for minority shareholders’ shares. An important aspect is the application of international financial reporting standards (IFRS) or national standards, depending on the jurisdiction. The methodology also includes the processes of deriving and adjusting information that are necessary for preparing consolidated financial statements, such as the balance sheet, profit and loss statement, and cash flow statement. All these processes are aimed at ensuring transparency and reliability of reporting, which contributes to a more complete and accurate perception of the financial results and risks of the group of companies by investors, creditors and other stakeholders. Thus, the methodological framework for consolidated financial reporting is an integral part of financial accounting, ensuring clarity and consistency of data, which allows for more efficient management of the company and the attraction of external resources.
Keywords: holdings and corporations, consolidated financial statements, consolidation, parent company, control, separate financial statements, compatible financial statements.