Consolidating company accounting functions

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So we need to be able to fully understand group accounts.

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The consolidation of business activities reduces operational redundancies and eliminates superfluous staff and administrative functions.We also need to appreciate the important legal distinction between the various different companies in a group, and the group as a whole. Different sets of accounts are used for different purposes.The individual accounts show the position and the performance of each individual company, but not the group as a whole.Some large businesses organise themselves as a single company.More frequently, a larger business will be organised as a group of companies.

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