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Financial consolidation is essential for combining financial statements from multiple subsidiaries into one cohesive set. This blog explains the methods, benefits, and challenges of consolidation, such as enhancing transparency, improving decision-making, and ensuring accurate reporting.

The indirect method for cash flow statements adjusts net income for non-cash items and working capital changes to determine operating cash flow. It's preferred for its simplicity, using data from existing financial statements. Key adjustments include depreciation, non-operating items, and changes in current assets and liabilities.