A reader of Gigantic Companys consolidated financial statements received from another source copies of the financial statements of the individual companies included in the consolidation The person is confused by the fact that the total assets in the consolidated balance sheet differ rather substant...

The relationship observed should always be true Assets reported by the parent company include its i ...

A reader of Gigantic Companys consolidated financial statements received from another source copies of the financial statements

Question:

A reader of Gigantic Company’s consolidated received from another source copies of the of the individual companies included in the consolidation. The person is confused by the fact that the total assets in the consolidated differ rather substantially from the sum of the asset totals reported by the individual companies.

Required
Will this relationship always be true? What factors may cause this difference to occur?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...