Answer to Question #78843 in Accounting for Liam Johnston
Why might it be necessary to consolidate and/or convert financial data to allow it to be analysed in accordance with organisational requirements?
any organization can consist of a lot of departments and directions. Moreover, it may have regional and production branches in the different regions and even countries. Every such unit has its own production and financial processes and, respectively, financial reporting and statements. These statements characterize performance of every separate unit. however, in order to see a picture of overall financial performance of an organization it is important to consolidate data.
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