Why do listed companies have parent company balance sheets and consolidated balance sheets in their annual reports?

1. In order to analyze the assets and operating conditions of the whole group, the consolidated statements can be used to analyze the company's performance and where the assets mainly come from. In particular, comparing the profit situation, it shows whether the profit center of the whole group company is in the parent company or the subsidiary company;

2. The financial statements of the parent company contain "long-term equity investment", including the investment in subsidiaries within the scope of consolidation (a certain proportion of the subsidiary's share capital is invested or wholly owned by the parent company), so it is necessary to consolidate the financial statements of the parent company to calculate the actual profit of the company;

Supplement:

1. merger refers to the merger of two or more separate enterprises into a reporting entity, which is divided into parent company and subsidiary company.

2. The parent company refers to the enterprise that has actual control over other merged subsidiaries, and the subsidiary refers to the enterprise that is actually controlled by the parent company, and the parent company has actual control over other subsidiaries, which refers to matters that can determine the finance, production and operation of other subsidiaries.