Hi, I recently started studying the fundamentals of the companies. However while looking at the balance sheets or results I see huge difference between standalone and consolidated statements. (e.g. Tata Steel)
I have few questions regarding consolidated statements.
1) If parent company owning only 60% of subsidiary then entire earning of subsidiary to be added into consolidated statement? or it is percent wise.
2) If subsidiary company directly taking money from parent company like having branch then why we need standalone statement?
3) If I buy tata steel stock will I get ownership in cores too? I mean if not why should I look at consolidated statement?
Thanks.
I have few questions regarding consolidated statements.
1) If parent company owning only 60% of subsidiary then entire earning of subsidiary to be added into consolidated statement? or it is percent wise.
2) If subsidiary company directly taking money from parent company like having branch then why we need standalone statement?
3) If I buy tata steel stock will I get ownership in cores too? I mean if not why should I look at consolidated statement?
Thanks.