What are Group Financial Statements?

Group financial statements are financial statements that include the financial information for more than one component. A component is an entity or business activity for which financial information is separately prepared, and which is included in the group financial statements. A component is most commonly a subsidiary, but it may also be a function, process, product, service, or geographical location, or even an investment accounted for under the equity method. Group financial statements are prepared in order to give financial statement users a more precise view of the financial results, financial position, and cash flows of a group of entities or business activities.