What is a Combined Statement?
A combined statement remembers data for a customer's different retail banking accounts onto a single periodic statement. Banks and financial institutions offer combined statements for the convenience of the customer and cost proficiency of the bank. Businesses and individuals might request to receive combined statements.
How a Combined Statement Works
The combined accounting statement incorporates all deposits, withdrawals and different transactions, as well as beginning and ending balances. Rather than the bank printing and mail or email separate statements for each account, the customer receives one record of all appropriate data. This economy of work exertion makes customer record-keeping simpler and brings down bank distribution costs.
Illustration of a Combined Statement
For instance, on the off chance that the customer has a mortgage, a home equity credit extension (HELOC), retail account, a individual retirement account (IRA), and trust account, then the bank would forward one statement which shows subtleties of the relative multitude of accounts activity.
Another model would be the point at which a business has various checking accounts. One account can act an operating account, while different handles normal cash flow activities. Every month when the business receives its account statement, it will remember the two accounts' transaction activities for a similar statement.
Combined versus Consolidated Company Financial Statements
Businesses with subsidiary arms might utilize combined statements. The combined financial statement all in all rundowns the activities of a group of related companies into one document. While combined, the financial statements of every entity stay separate. Each subsidiary or related business shows up as an independent company.
The benefit of a combined financial statement is that it permits an investor to dissect the consequences of the corporation on the whole, and afterward measure the performance of the individual companies separately.
Interestingly, a consolidated financial statement aggregates the financial position of both the parent company and its auxiliaries into one report. This blend permits an investor to check the overall strength of the whole company instead of survey the financial statements of each segment of the business separately. The consequences of the subsidiary businesses activities become part of the parent company's income statement, balance sheet, and cash flow statement.
Neither a combined or a consolidated financial statements incorporates intercompany transactions. Intercompany transactions are those interactions occurring between the parent and the subsidiary, or the companies when they act collectively. In the event that they stay on the books, they might be accounted for two times, once for the parent and again for the subsidiary.
In both consolidated and combined statements, a non-controlling interest account, otherwise called a minority interest account, is made. This account tracks interest in a subsidiary that the parent doesn't possess or control.
In consolidated statements, there are no increases in things for such things as stock value and retained earnings. Be that as it may, in a combined statement, the stockholders' equity is added across the accounts.
While solidifying statements, income and expenses from the subsidiary add to the parent company's income statement. Likewise, while consolidating financial statements, income and expenses are added across the companies for a group total. This expansion causes an increase in the group's income as compared to on the off chance that the companies had reported individually.
- The combined accounting statement incorporates all deposits, withdrawals and different transactions, as well as beginning and ending balances. Rather than the bank printing and mail or email separate statements for each account, the customer receives one record of all relevant data.
- For instance, in the event that the customer has a mortgage, a home equity credit extension (HELOC), retail account, a individual retirement account (IRA), and trust account, then, at that point, the bank would forward one statement which shows subtleties of the relative multitude of accounts activity.