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Consolidated Financial Statements – Who Needs Them?
In this guide, we’ll clearly explain who must prepare consolidated financial statements, when they are required, and why they matter. If your company operates within a group, this article will help you understand your legal and practical obligations in 2025.
What Are Consolidated Financial Statements?
Consolidated financial statements combine the financial results and positions of a parent company and all its subsidiaries into one unified report. The goal is to present a true and fair picture of the entire group as if it were a single company.
They typically include:
- Consolidated Balance Sheet
- Profit and Loss Statement
- Statement of Changes in Equity
- Cash Flow Statement
- Notes and Explanations
When Are They Required in Bulgaria?
Under the Bulgarian Accounting Act and EU Directive 2013/34/EU, a company must prepare consolidated financial statements if it controls one or more subsidiaries.
Control usually means:
- Owning more than 50% of the voting shares, or
- Having the power to direct financial or operating policies of another company.
Even if the ownership is below 50%, de facto control through contracts or management influence can still trigger the obligation.
Subsidiaries may also be exempt if their parent is already included in consolidated financial statements prepared at a higher EU level.
Why Compliance Matters
Preparing consolidated financial statements is not a bureaucratic task—it’s an essential part of transparent and responsible financial reporting. It provides investors, lenders, and partners with a clear overview of the group’s performance and risk exposure.
Failure to comply with these obligations can result in:
- Administrative penalties and fines
- Delays in audits or regulatory approvals
- Loss of business reputation
How ASB Accounting Services Bulgaria Can Help
If your Bulgarian company owns or controls others—locally or abroad—you may fall under the consolidation requirements. Understanding whether you qualify can be complex, and each case is unique.
At ASB Accounting Services Bulgaria, we help businesses:
- Assess their group structure and control relationships
- Determine whether consolidation is mandatory
- Prepare or review consolidated financial statements in full compliance with Bulgarian and EU law
Our experienced accountants provide clear guidance and ensure your business stays compliant while maintaining efficiency and transparency.
Техесе statements are more than a legal formality—they show the real strength and structure of your business group. If you’re unsure about your obligations, don’t wait for year-end pressure. Reach out to a professional team that understands the specifics of Bulgarian accounting.
Contact ASB Accounting Services Bulgaria today for a consultation and keep your business on the right side of compliance.