The consolidated financial statements only report income and expense activity from outside of the economic entity.
[IMGCAP(1)]Ever since the earliest spreadsheet software, people have been relinquishing many tasks and responsibilities to this ubiquitous tool, and for good reason: spreadsheets are easy to set up, perform all but the most complex functions, and are available everywhere.
Admittedly, an application such as Microsoft Excel, which took the business world by storm, is a lot more powerful today than its earlier versions.
After their acquisitions, these smaller companies, or subsidiaries, may have remained legally separate from the large corporation, or parent company.
However, when reporting financial information, the parent company is required to submit financial statements that combine their information with that of their subsidiaries.
We use Timberline, but we prepare our financials each month on a consolidating spreadsheet.