Why are investment companies not in the report?

Reasons why investment companies are not included in the statements: If two companies buy and sell a large number of shares with each other, the income of each company will increase, and the income of the consolidated financial statements will increase without offsetting, thus achieving the purpose of adjusting the data in the statements.

If equity financing is used, the paid-in capital will be borrowed from bank deposits. If the financing is in the form of long-term loan of creditor's rights, the subjects included are different according to the different financing forms and stages: borrowing time: borrowing bank deposits, lending other payables/long-term payables; When paying interest: borrow financial expenses and borrow bank deposits; Pay off the principal: borrow other payables/long-term payables and borrow bank deposits.

meaning

Financial statements prepared by the holding company based on the accounting entity composed of the parent company and its subsidiaries, as well as individual financial statements prepared by the holding company and its subsidiaries, reflect the consolidated financial position and operating results of the group after the current accounts within the group are offset. Consolidated statements include consolidated balance sheet, consolidated income statement, consolidated cash flow statement or consolidated statement of changes in financial position.