Multinational Consolidation and Currency Translation
Multinational consolidation and currency translation
• Consolidated financial statement
Consolidated financial statements are financial statements that factor the holding company's subsidiaries into its aggregated accounting figure. It is a representation of how the holding company is doing as a group. The consolidated accounts should provide a true and fair view of the financial and operating conditions of the group. Doing so typically requires a complex set of eliminating and consolidating entries to work back from individual financial statements to a group financial statement that is an accurate representation of operations.
The guiding principle of consolidated financial statements is that of the 'single entity' principle. The aim of consolidated financial statement is to show the performance of the group as if it were a single entity. This means that all intra-group transactions (sales from one group company to another group company, for example) and intra-group balances (intercompany loans, for example) need to be eliminated as otherwise the consolidated financial statements would double count these balances.
The consolidated financial statements give a true and fair view of net assets, financial position, results of operations and cash flows of the group for business year in accordance with accounting principles generally accepted in the United State of America.
In the level of Siemens, the financial function is carry out of the company finance department and Siemens financial services company. The company finance department is the functional department of parent company. The Siemens financial services company is an independent subsidiary. The finance department is responsible for formulating the company's financial policies and guidelines. Financial company is responsible for most of the operational business.
| |Sep 30, 2012 |Sep 30, 2011 |Sep 30, 2010 |
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• Consolidated financial statement
Consolidated financial statements are financial statements that factor the holding company's subsidiaries into its aggregated accounting figure. It is a representation of how the holding company is doing as a group. The consolidated accounts should provide a true and fair view of the financial and operating conditions of the group. Doing so typically requires a complex set of eliminating and consolidating entries to work back from individual financial statements to a group financial statement that is an accurate representation of operations.
The guiding principle of consolidated financial statements is that of the 'single entity' principle. The aim of consolidated financial statement is to show the performance of the group as if it were a single entity. This means that all intra-group transactions (sales from one group company to another group company, for example) and intra-group balances (intercompany loans, for example) need to be eliminated as otherwise the consolidated financial statements would double count these balances.
The consolidated financial statements give a true and fair view of net assets, financial position, results of operations and cash flows of the group for business year in accordance with accounting principles generally accepted in the United State of America.
In the level of Siemens, the financial function is carry out of the company finance department and Siemens financial services company. The company finance department is the functional department of parent company. The Siemens financial services company is an independent subsidiary. The finance department is responsible for formulating the company's financial policies and guidelines. Financial company is responsible for most of the operational business.
| |Sep 30, 2012 |Sep 30, 2011 |Sep 30, 2010 |
|