Consolidated accounts are financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if the entire group were a single entity.
A Consolidated Balance Sheet, or Consolidated Statement of Financial Position, summarizes the financial status of a parent company and its subsidiaries as a single economic entity.
A consolidated cash-flow statement provides a comprehensive overview of cash inflows and outflows from a group of entities, combining individual cash-flow statements subject to various consolidation adjustments for accurate financial reporting.
A consolidated financial statement brings together all assets, liabilities, and other operating accounts of a parent company and its subsidiaries, providing an integrated view of the entire corporate group’s financial status.
Consolidated financial statements combine the financial records of a group of companies, providing a comprehensive view of the entire group's financial situation.
Understanding the difference between the fair value of the consideration given by an acquiring company when acquiring a business and the aggregate of the fair values of the separable net assets acquired, commonly referred to as consolidated goodwill.
A consolidated income and expenditure account amalgamates the financial information from individual income and expenditure accounts of a group of organizations into a single, comprehensive financial document, adjusted for any necessary consolidation adjustments.
Federal legislation that requires group health plans sponsored by employers with 20 or more employees to offer continuation of health insurance coverage to employees and their dependents after they leave their jobs. Employees must pay the entire premium plus up to 2% administrative costs.
The combined profit of a group of organizations presented in the consolidated profit and loss account. Any intra-group items should be eliminated by consolidation.
A consolidated profit and loss account (also known as a consolidated income statement) combines the individual profit and loss accounts of group entities, presenting a comprehensive view of the group's financial performance.
The Consolidated Statement of Cash Flows - A Key Financial Document Showing Combined Cash Flow Activities in Entities for Investors
The consolidated statement of financial position, often referred to as the consolidated balance sheet, provides a snapshot of a parent and its subsidiaries’ financial situation at a specific point in time.
A consolidated tax return combines the financial reports of companies that form an affiliated group, as defined by tax laws. This applies to firms that are at least 80% owned by a parent or another inclusive corporation.
Items that are eliminated from separate taxable income, computed on a consolidated basis, and combined with the aggregated separate taxable income (for example, net operating loss, net capital gain or loss, total charitable contributions).
The process of combining and adjusting financial information from the individual financial statements of a parent undertaking and its subsidiaries to prepare consolidated financial statements, which present financial information for the group as a single economic entity.
Adjustments made in the process of consolidating the accounts of a group of organizations, ensuring the elimination of intra-group transactions' profits or losses from consolidated financial statements.
A consolidation loan combines and refinances multiple other loans or debt into a single loan, typically aimed at reducing the monthly payments an individual needs to make. It is usually an installment loan.
An entity that combines less-than-carload shipments into full carloads to take advantage of lower shipping rates for full carloads.
A consortium is a collective arrangement wherein two or more businesses unite temporarily to undertake a large and complex project, leveraging pooled skills and resources to achieve a common goal.
Consortium relief is a modified form of group relief that applies to consortia, which allows for the surrendering of losses between consortium members and the consortium company. This serves to optimize tax efficiency in complex corporate structures.
A constant in computer science and mathematics refers to a value that does not change during the execution of a program or evaluation of an expression. They stand in contrast to variables, which can store different values during program execution.
Constant dollar is an accounting term used to reflect the value of money after adjusting for inflation, providing a consistent measurement standard across different time periods.
Constant dollars refer to dollars of a base year, used as a gauge in adjusting the dollars of other years to ascertain actual purchasing power.
Constant Purchasing Power Accounting (CPPA) involves adjusting financial statements to account for changes in the purchasing power of money over time due to inflation or deflation. This method adjusts for the distortions caused by inflation, ensuring that financial information remains accurate and comparable.
Constant Returns to Scale refers to a situation in economic production where the amount of output changes at the same rate as the quantity of inputs used. For example, a doubling of raw materials and labor would result in a doubling of the final product.
A constant-payment loan is structured such that equal payments are made periodically to completely pay off the debt by the loan's maturity date. This type of loan typically involves fixed interest rates and scheduled payments that cover both principal and interest.
A constituent company is a firm that is part of a group of affiliated, merged, or consolidated corporations. These companies work together, often sharing resources and strategies, to achieve mutual corporate goals.
Fundamental principles of law by which a government is created and a country is administered, representing a mandate from the people on governance.
Constitutional rights are the fundamental rights and freedoms guaranteed to individuals by the constitutions of a country, whether at the federal or state level. These rights often include freedoms related to speech, religion, assembly, and protection against unfair governmental actions.
A constraining factor, also known as a limiting factor, is an element that restricts or limits the production or sale of a given product. Nearly all firms encounter one or more constraining factors, which could involve limited machine-hours and labor-hours, shortages of materials and skilled labor, or restrictions related to display space, warehouse space, and working capital.
A constraint is a circumstance that prevents an organization from achieving higher levels of performance. Constraints typically result from limiting factors such as a shortage of skilled labor, materials, production capacity, or sales volume, and must be eliminated or reduced to improve performance. Constraints are also integral in linear programming problem statements.
The Construction Industry Scheme (CIS) is a set of regulations established by the UK government to manage tax payments within the construction sector.
The Construction Industry Scheme (CIS) is a set of statutory provisions established to ensure tax is deducted at the basic rate from payments made to subcontractors in the building industry unless the subcontractor can provide a specific Revenue certificate. Implemented on 6 April 2007, the scheme helps to manage tax collection in the construction sector effectively.
A construction loan is a short-term real estate loan utilized to finance building costs. Funds are disbursed as needed or according to a prearranged plan, repaid upon project completion, often from a mortgage loan. These loans typically come with higher interest rates and origination fees.
Constructive dividend involves the disallowance or reclassification of a transaction between a closely held corporation and a shareholder, often recharacterizing a loan to a stockholder as a dividend.
Constructive notice is a legal concept that presumes an individual has been given notice of a property or legal matter as a result of the information being publicly available or recorded, even if the individual has not been personally informed.
Constructive ownership of stock refers to situations in which a taxpayer is treated as owning shares that are actually owned by another person or entity, due to the application of specific tax rules, also known as attribution rules.
Constructive Receipt of Income is a doctrine where a taxpayer must include in gross income amounts that, though not actually received, are deemed received during the taxable year. This principle ensures that taxpayers cannot defer taxation by simply delaying the physical receipt of income.
A consultant is an individual or organization that provides professional advice to entities for a fee, often in areas such as management, accounting, finance, legal, and technical matters. Consultants operate as independent contractors, not employees.
The Consultative Committee of Accountancy Bodies (CCAB) is a body consisting of five accountancy institutes in the UK and Ireland, aimed at coordinating activities within the profession and maintaining high standards of practice and ethics.
The Consultative Committee of Accountancy Bodies (CCAB) is a collaborative umbrella group set up in 1970 by the six main accountancy bodies in the UK and Ireland to foster cooperation and address financial accounting and reporting issues.
Materials that are used in a production process but do not form part of the direct cost of sales, such as lubricants and sanding discs.
The ultimate user of a product or service, who may not always be the purchaser of the product.
Consumer behavior involves understanding how and why individuals make purchasing decisions, influenced by internal and interpersonal factors. Marketers use this knowledge to create effective stimuli that prompt sales by aligning with customer personalities and needs.
A leading indicator of consumer spending that gauges public confidence about the health of the U.S. economy through a survey of opinions on various economic factors.
A landmark federal legislation establishing rules of disclosure that lenders must observe in dealings with borrowers, ensuring transparent consumer lending practices.
A consumer finance company is a type of financial institution that specializes in offering credit products and services to individuals who require loans for personal use.
Consumer goods are items purchased by individuals for personal or household use, as opposed to capital goods, which are used to produce other goods. These goods are essential for daily life and can be classified into durable, non-durable, and services.
Interest incurred on personal debt and consumer credit, which is not deductible for tax purposes after 1990.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a critical indicator used to understand inflation and the cost of living.
Consumer products are tangible personal properties that are typically used for personal, family, or household purposes.
Laws designed to aid retail consumers of goods and services that have been improperly manufactured, delivered, performed, handled, or described. Such laws provide the retail consumer with additional protection and remedies not generally provided to merchants and others who engage in business transactions.
Consumer research is the process of gathering and analyzing data about consumers to understand their behaviors, preferences, and motivations. This research employs techniques such as focus groups, in-depth interviews, inquiry tests, aided recall interviews, consumer surveys, and attitude testing. The primary goal is to determine factors that influence consumer buying habits and decision-making processes.
Consumer sovereignty refers to the ability of consumers to obtain exactly what they want by paying a price that is satisfactory to suppliers. It is considered a prerequisite of properly functioning markets. However, sovereignty can be limited by factors such as lack of information, constraints on prices and supplies, and third-party influences on purchasing decisions.
Consumer surplus is an economic concept that represents the excess value a consumer derives from consuming goods over the amount paid for those goods.
Consumer-driven healthcare (CDHC) encompasses a variety of health insurance plan designs aimed at providing insurance protection while encouraging participants to be cost-conscious about their healthcare choices.
Consumerism focuses on public concern over the rights of consumers, the quality of consumer goods, and the honesty of advertising. The ideology gained significant momentum in the 1960s after President John F. Kennedy introduced the Consumer Bill of Rights.
The term 'consummate' refers to the completion or finalization of a business arrangement, contract, or event. It signifies the successful conclusion of a particular process or agreement.
Consumption represents the total spending by individuals or a nation on goods and services during a specific time period. This macroeconomic concept reflects the usage of resources, and although many durables like clothing, appliances, and automobiles are consumed over a longer period, their expense is accounted for within the consumption cycle.
The consumption function is a mathematical relationship between the level of consumption and the level of income. It posits that consumption is greatly influenced by income.
The Consumption Possibility Line represents the maximum amounts of consumption possible at varying levels of disposable income, or of Gross Domestic Product (GDP).
Consumption, Investment, Government expenditures (C&I or C&I&G) are key components of the Gross Domestic Product (GDP), used to measure a country's economic performance.
A container ship is a type of vessel specifically designed for the transportation of cargo packed into large, standardized containers. It revolutionizes the shipping industry by allowing for efficient and flexible movement of goods.
Contingencies in accounting refer to potential gains and losses that are known to exist at the balance-sheet date. These outcomes will only be known after one or more future events occur or do not occur. The way these contingencies are handled in financial statements depends on their nature, and specific accounting standards provide the required guidance.
A contingency is a potential event or circumstance that is uncertain but could have either positive or negative consequences on an entity's financial situation or operations. It is often considered in risk management and financial planning.
A contingency fund is an amount reserved for a possible loss, such as those caused by a business setback. Contingency funds and other reserves set aside are not deductible for tax purposes.
Contingency Leadership Theory, advanced by Frederick E. Fiedler, posits that successful leadership styles are determined by the specific situation or context within an organization. According to this theory, effective leadership depends on an alignment between leadership style and situational variables, rather than a one-size-fits-all approach.
Contingency planning is an approach used to anticipate future events that, while unlikely, are possible. It involves creating a plan of action to respond effectively if these events occur. Examples include crisis management and disaster recovery plans.
A contingency table is a type of data matrix presenting sample observations classified by two or more characteristics, such as categories or attributes.
The Contingency Theory of Management Accounting posits that there is no single universally acceptable management accounting system suitable for all organizations or consistently effective within an organization across all situations. Instead, accounting systems must adapt to prevailing circumstances, such as shifts in the environment, competition, organizational structures, and technology.
A Contingent Agreement is a contract arrangement in which certain obligations depend on the occurrence of a particular event. These agreements often come into play during mergers and acquisitions, real estate transactions, and litigation settlements.
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events, beyond the control of the accounting entity.
A contingent beneficiary is an individual or entity entitled to receive the proceeds or benefits of a trust or estate only when a specified event occurs, such as the death of a named beneficiary.
Contingent consideration refers to a payment made as part of a business acquisition that is contingent on future events. This concept is commonly used in earn-out agreements.
A contingent contract is a legal agreement that becomes enforceable only upon the occurrence or non-occurrence of a specific event. This form of agreement is commonly used in various business transactions, including mergers and acquisitions.
A contingent fee is a payment to a lawyer for legal services that depends, or is contingent, upon winning the case. Often indicates a percentage of the awarded amount.
A contingent gain is an economic benefit that may be realized when a favorable event occurs, though it is not guaranteed and depends on future uncertainties.
Either a possible obligation arising from past events that will be confirmed by one or more uncertain future events not wholly within an entity's control, or a present obligation from past events that cannot be measured reliably or is not probable to require settlement.
A contingent liability refers to potential financial obligations that a business may incur due to actions of parties other than its own employees, notably when independent contractors are involved.
A contingent loss is an economic loss that may occur in the future depending on the outcome of a specific event, typically related to a contingent liability.
An element of rent that varies based on certain conditions, such as sales, usage, interest rates, or inflation indexes, rather than being fixed at the inception of the lease.
A right conferred by federal law on employees and their spouses and dependents to continue participation in an employer-sponsored healthcare plan even after their coverage is terminated due to specified events such as death or divorce of the employee.
Courses offered by colleges or other institutions that are not for degree credit. Many professions require licensed individuals to take a certain number of continuing education hours or units (CEUs) each year.
Continuity in marketing refers to the existence of a similar theme throughout an advertising or marketing campaign. It also pertains to the length of uninterrupted media schedules, ensuring consistent and cohesive messaging over time.
Continuity of Life refers to the characteristic of a corporate structure where the organization continues its existence despite the death, incapacity, bankruptcy, retirement, resignation, or expulsion of its members.
A continuous audit is an in-depth examination of financial records conducted on a recurring basis throughout the accounting period, aimed at detecting and correcting mistakes and improper accounting practices before the reporting year-end.
A budget for a future month or quarter, which is added to an organization's budget as the past month or quarter is dropped. The entire period's budget is revised and updated as necessary, prompting management to continuously consider short-range plans.
The ongoing process of improving an organization's goods or services, with the aim of increasing customer satisfaction. In a highly competitive environment, organizations need to actively seek ways to reduce costs, improve quality, and eliminate waste.
An industrial process that continuously receives raw materials and processes them through to completed units. Hospital healthcare is a 24-hour-a-day, 7-day-a-week continuous process.
Continuous production is a manufacturing process where raw materials are constantly fed into the production system to create a standardized product.
In motivational theory, continuous reinforcement refers to the process of providing an individual with positive feedback on a continuous basis. It is a method often used to enhance and maintain desirable behavior by offering immediate and consistent reinforcement after each occurrence of the target behavior.
Continuous stocktaking is a system of inventory management designed to regularly verify stock levels by counting and reconciling physical stock with accounting records.
A system of costing applied to industries where production methods are continuous, such as in electricity generation and bottling. This system uses average costing to determine unit cost by dividing the total production cost by the number of items produced.
Continuously Contemporary Accounting (CoCoA) is an accounting methodology that values assets and liabilities based on their current market conditions rather than historical costs.
A method of accounting that evaluates a company's financial position based on its ability to adapt to changing environments and recognizes general price level changes. While favored by some academics, it has seen limited interest among practitioners.
A contra account is an account used in a general ledger to reduce the value of a related account. These entries are used to adhere to accounting principles such as matching and conservatism.
Contra accounts are used in financial accounting to offset balances between accounts, often simplifying the settlement process and providing clearer financial statements.
A contra-asset account is used in accounting to accumulate amounts that reduce the value of a related asset account, such as accumulated depreciation being subtracted from the property, plant, and equipment asset account.
