Kinkōzai

Kinkōzai, or "consolidated financial statements," are comprehensive reports that present a company's overall financial position by combining the financial information of a parent company and its subsidiaries. They provide a clear picture of the entire corporate group’s assets, liabilities, income, and cash flows as if they were a single entity. This helps investors, creditors, and management assess the company's true financial health and performance, accounting for intra-group transactions and eliminations to avoid double counting. Essentially, Kinkōzai offer a unified view, simplifying analysis of complex corporate structures.