{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/10/#10-objectives","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"810","topic_title":"Consolidation","subtopic":"810-10","subtopic_title":"Overall","section":{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-10-10-1","para":"10-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_8318F0EA-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The purpose of <a href=\"/glossary/c/#consolidated-financial-statements\" class=\"term\" title=\"The financial statements of a consolidated group of entities that include a parent and all its subsidiaries presented as those of a single economic entity.\"><span>consolidated financial statements</span></a> is to present, primarily for the benefit of the <a href=\"/glossary/o/#owners\" class=\"term\" title=\"Used broadly to include holders of ownership interests (equity interests) of investor-owned entities, mutual entities, or not-for-profit entities. Owners include shareholders, partners, proprietors, or members or participants of mutual entities. Owners also include owner and member interests in the net assets of not-for-profit entities.\"><span>owners</span></a> and creditors of the <a href=\"/glossary/p/#parent\" class=\"term\" title=\"An entity that has a controlling financial interest in one or more subsidiaries. (Also, an entity that is the primary beneficiary of a variable interest entity.)\"><span>parent</span></a>, the results of operations and the financial position of a parent and all its <a href=\"/glossary/s/#subsidiary\" class=\"term\" title=\"An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)\"><span>subsidiaries</span></a> as if the <a href=\"/glossary/c/#consolidated-group\" class=\"term\" title=\"A parent and all its subsidiaries.\"><span>consolidated group</span></a> were a single economic entity. There is a presumption that consolidated financial statements are more meaningful than separate financial statements and that they are usually necessary for a fair presentation when one of the entities in the consolidated group directly or indirectly has a controlling financial interest in the other entities. </span></span></div></div>","snippet":"The purpose of consolidated financial statements is to present, primarily for the benefit of the owners and creditors of the parent, the results of operations and the financial position of a parent and all its subsidiari…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f08c65d601607cacf843f6d48a862f3179cf25dd174f2e04999bf2f3a49e694b","downloaded_from":"2026-09-10T01:28:47.938Z","last_downloaded_at":"2026-09-10T01:28:47.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481432","source_sha256":"10f56ee3013950e77eaccbc325d5c87f8f3ffb683cf93967fd7e312cd1895831"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c3e6d69394e3f67f62c144fdaecc9b9b12be19531e69a41c834a0b95cab0211","downloaded_from":"2026-09-10T01:28:47.938Z","last_downloaded_at":"2026-09-10T01:28:47.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481432","source_sha256":"10f56ee3013950e77eaccbc325d5c87f8f3ffb683cf93967fd7e312cd1895831"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4229d819f210858b32795c59dc756e94bbb3103860e84f4ab2a7baa845a9a78","downloaded_from":"2026-09-10T01:28:47.938Z","last_downloaded_at":"2026-09-10T01:28:47.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481432","source_sha256":"10f56ee3013950e77eaccbc325d5c87f8f3ffb683cf93967fd7e312cd1895831"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4229d819f210858b32795c59dc756e94bbb3103860e84f4ab2a7baa845a9a78","downloaded_from":"2026-09-10T01:28:47.938Z","last_downloaded_at":"2026-09-10T01:28:47.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481432","source_sha256":"10f56ee3013950e77eaccbc325d5c87f8f3ffb683cf93967fd7e312cd1895831"}}