Answer to Question #219457 in Accounting for Rose

Question

Why might it be necessary to consolidate and/or convert financial data to allow it to be analysed in accordance with organisational requirements?

Answer 1

Any organization can include many directions and departments, as well as have regional and production branches in different regions and even countries. Each such unit has its own financial and operational processes (i.e. financial reporting and management reporting). Data consolidation is needed to get a picture of the overall financial performance of an organization. After all, it is more logical to analyze information for the entire group as a whole, regardless of the number and location of legal entities included in it.