Unconsolidated Subsidiary


DEFINITION of 'Unconsolidated Subsidiary'

A company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.

BREAKING DOWN 'Unconsolidated Subsidiary'

A company may be treated as unconsolidated even when a parent company owns 50% or more of its voting common stock. This usually occurs when the parent is not in actual control of subsidiary, has temporary control of the subsidiary or if the parent company's business operations are considerably different than that of the subsidiary.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Financial Statements

    Records that outline the financial activities of a business, ...
  3. Clean Balance Sheet

    A company's financial statement that summarizes its assets, liabilities ...
  4. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
  5. Consolidated Financial Statements

    The combined financial statements of a parent company and its ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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