Financial statements that reflect the total economic entity. For example, on a consolidated income statement a corporation having several subsidiaries would report the total of all of its companies sales that were made to customers outside of its group. (Sales to companies within its group of related companies would be excluded as well as the purchases within its group.) A consolidated balance sheet would report the combined assets except for claims against companies within its group. Liabilities would be combined except for amounts owed to companies within its group.