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Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
To consolidate is to combine assets, liabilities and other financial items of two or more entities into one.
The cumulative assets from the business, as well as any revenue or expenses, are recorded on the balance sheet of the parent company.
This information is also reported on the income statement of the parent company.
The consolidated financial statements only report income and expense activity from outside of the economic entity.