# Consolidation

*Accounting & Reporting — Finicade finance glossary*

Consolidation combines a parent and its subsidiaries into one set of accounts, eliminating intra-group transactions to present a single entity.

Consolidation combines a parent and its subsidiaries into one set of accounts, eliminating intra-group transactions so the group is presented as a single economic entity. The threshold is control, not ownership percentage. Where control is absent but influence isn't, the equity method reports only a share of profit — which is how substantial businesses can sit behind a single line on the income statement.

**Also known as:** consolidated accounts, group accounts, equity method

**Related terms:** [Non-Controlling Interest](https://finicade.com/glossary/non-controlling-interest), [Financial Statements](https://finicade.com/glossary/financial-statements), [Goodwill](https://finicade.com/glossary/goodwill), [Off-Balance-Sheet](https://finicade.com/glossary/off-balance-sheet), [Segment Reporting](https://finicade.com/glossary/segment-reporting)

Source: https://finicade.com/glossary/consolidation