Comparability of Consolidated Financial Statements

This study aims to provide a critical analysis of the process of consolidating financial statements when their results are used for comparability purposes. Through exploratory research, together with the analysis of examples of financial statements from three (3) business groups, we sought to evaluate the adequacy of these statements for comparative purposes and their ability to predict future trends when analyzed in isolation. It is understood that, although the consolidation of financial statements represented an advance in accounting science, legal requirements, and the recognition by most scholars of the value of consolidated information, the use of these statements has limitations and is not exempt from criticism. Significant variations in the results of subsidiaries can compromise the analysis of consolidated statements. In order to develop the study, it was necessary to first address the methodology for evaluating permanent investments in other companies and the procedures and techniques for consolidating financial statements in Brazil.