Consolidated = Σ each entity's statements (in group currency) − intercompany eliminations ± alignment adjustments
Financial consolidation is the process of combining the financial statements of several entities in the same group into a single P&L, balance sheet and cash flow, as if they were one company, eliminating transactions between them.
How it is calculated
Consolidated = Σ each entity's statements (translated to group currency) − intercompany eliminations ± alignment adjustments.
Example with numbers
Entity A sells 100 to external customers and 20 to entity B in the same group. B sells 80 externally. Summed revenue: 200. Consolidated revenue: 180, because the 20 between A and B is eliminated.
How Fibady does it
Each entity connects to its ERP; Fibady maps accounts to a group chart, applies per-entity FX, leaves intercompany accounts, or entries tagged as intercompany, out of the group total, and keeps every figure traceable to the original entry.