A consolidated financial statement can be defined as the financial statements of a parent company and its subsidiaries combined to form a single economic entity (CNAC 10, 2011). The entity that acquires the other entity is called the parent company and the entity that was acquired is called the subsidiary. Consolidation financial reports arise when one entity buys another entity, subsequently forming a group. The objective of preparing consolidated financial statements is to combine the identifiable assets and liabilities (and contingent liabilities) and equity of two separate entities. On the acquisition date, assets and liabilities are measured at fair value to ensure that assets and liabilities are not overvalued. The acquisition analysis includes determining the consideration transferred, goodwill (or trading gain) and the fair value of the assets as of the acquisition date. When Woolly Ltd bought Jumper Ltd; they paid more than the consideration transferred (fair value of assets less liabilities) of the entity, so goodwill was provided. Valuation entries in a business combination occur when the fair value of the assets or liabilities differs from their carrying amount on the acquisition date. Given that Jumper Ltd held assets whose fair value was higher than the book value; there was a reasoning for the BCVR entries. Intra-group transactions result from the transfer of assets or liabilities such as inventory or dividends from the subsidiary to the parent company or vice versa (within the group). Where Woolly Ltd and Jumper Ltd carry out intra-group transactions, as separate legal entities, these transactions are recorded as usual. However, from the group's perspective, these transactions are internal and therefore not recognized by external users, so they should be eliminated. Finally, a non-controlling interest occurs when the parent company owns less than 100% of the subsidiary, but this is not relevant to Woolly Ltd since Jumper Ltd's ownership is 100%. These steps are Administrators must be able to visualize the financial performance of the group in order to make relevant and informed decisions. In order to obtain this information, the correct procedures, as mentioned, must be followed to ensure that assets are not overstated and liabilities are not overstated.