The balance sheet and consolidated balance sheet both represent the financial statements of the company. The consolidated balance sheet is an extension of the balance sheet. All companies prepare financial statements to know about various aspects of the business. Preparing the balance sheet is easy as compared to a consolidated balance sheet. These financial statements include information such as assets, liabilities, equity of stakeholders, and subsidiaries.

What is a Balance Sheet?

A balance sheet is defined as a financial statement that includes the assets, liabilities, and equity of the company. Balance Sheet is used as a metric that helps to evaluate the previous and present progress of the company. Mostly this balance sheet is prepared at the end of the accounting period which is 31st of March. It shows the financial position of the business in a systematic and standard form. Along with financial statements such as income statements, and statements of cash flow, the balance sheet is an important document to prepare. Balance Sheet helps to take rational decisions for the users of the statements.

What is a Consolidated Balance Sheet?

A consolidated balance sheet consists of all the assets, liabilities, equity, and ownership of holding companies and subsidiaries into a single combined document. The consolidated balance sheet is more complex and detailed as compared to the balance sheet. It consists of the details of the holding of a parent company as well as of all the subsidiaries. For the preparation of the consolidated balance sheet, the previous year’s data is not included. This consolidated balance sheet is used by agencies, internal and external stakeholders, and investors. Consolidated balance sheets are considered mandatory for big companies and companies that have their subsidiaries.

Difference between Balance Sheet and Consolidated Balance Sheet

The balance sheet and consolidated balance sheet both consist of financial statements regarding the company. Whereas the consolidated balance sheet is an extension of the balance sheet. Both differ with respect to various parameters such as purpose, scope, complexity, analysis comparative, valuation, etc. Below is the difference table showing the difference between the balance sheet and the consolidated balance sheet.