Therefore, if you make consolidated statement of cash flows based on the consolidated balance sheet, you are automatically using the wrong translation foreign exchange rates. As a result, the individual line items in your consolidated cash flow statement would contain lots of effects of changes in foreign exchange rates – and maybe you know ...

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and ... The parent company reports the financial results of the subsidiary company in its consolidated balance sheet to present a claim on assets by minority shareholders or in its consolidated income statement as a percentage of profits belonging to minority shareholders. Minority interest shareholders have less influence on a firm’s management and ... Key Difference – Balance Sheet vs Consolidated Balance Sheet Balance sheet is one of the principal year-end financial statements prepared by companies. A consolidated balance sheet is similar to a balance sheet, but there is a difference between them in terms of preparation.