Reply to this discussion: Developing consolidated financial statements for two consecutive years involves combining the financial information of the parent company and its subsidiaries. The process typically includes the following steps: Gather Financial Statements: Collect the individual financial statements of the parent company and its subsidiaries for both years Eliminate Intercompany Transactions: Identify and eliminate any intercompany transactions between the parent and subsidiaries to prevent double counting. Adjust for Unrealized Profits: Make adjustments for any unrealized profits from intercompany transactions that occurred in the past years. Consolidate Financial Data: Combine the financial data from the parent company and subsidiaries into one set of financial statements, including the balance sheet, income statement, and cash flow statement. Calculate Non-controlling Interest: Determine the portion of equity in subsidiaries not owned by the parent company and report it as non-controlling interest in the consolidated financial statements. Prepare Consolidated Financial Statements: Present the consolidated financial statements that reflect the financial position and performance of the entire group for each of the two consecutive years. Preparing a worksheet to consolidate the financial statements involves organizing the financial data of the parent and subsidiaries in a structured format to facilitate the consolidation process. The worksheet helps in