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A consolidated PL is a financial document that combines the financial results of a parent company and its subsidiaries. When a company has subsidiaries or affiliates, a consolidated PL is prepared to combine the financial results of the parent company and its subsidiaries into a single, comprehensive report.
For an associate, we have to use the equity method, which means we simply bring in our share of the associates results. In the consolidated statement of profit or loss, any dividend income received from the associate is replaced by bringing in one line that shows the parents share of the associates profit.
Profit and Loss (PL) Statement A PL statement, more commonly labeled statement of income or income statement, is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal year or quarter.
Add all revenue earned over the accounting period. Add all expenditures made throughout the accounting period. Subtract total expenses from total revenue to know the difference. If the value is positive, it represents profit; if it is negative, it represents a loss.
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