# ASC 810-10-10: Consolidation — Overall — 10 Objectives

Source: FASB Accounting Standards Codification, Basic View

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## ASC 810-10-10: 10 Objectives

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##### [810-10-10-1](https://asc.understandingaccounting.org/asc/810/10/#810-10-10-1)

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The purpose of [consolidated financial statements](https://asc.understandingaccounting.org/glossary/c/#consolidated-financial-statements "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.") is to present, primarily for the benefit of the [owners](https://asc.understandingaccounting.org/glossary/o/#owners "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.") and creditors of the [parent](https://asc.understandingaccounting.org/glossary/p/#parent "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.)"), the results of operations and the financial position of a parent and all its [subsidiaries](https://asc.understandingaccounting.org/glossary/s/#subsidiary "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.)") as if the [consolidated group](https://asc.understandingaccounting.org/glossary/c/#consolidated-group "A parent and all its subsidiaries.") 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.