This chapter introduces consolidated financial reporting in general and
highlights public sector specifics. The aim is to provide insights for
the reasons for consolidation, the peculiarities in the public sector and
underlying theories of consolidation. The chapter shows organisational
challenges for preparing consolidated financial statements and explains
the differences between consolidated financial statements and whole of
government accounts. The different types of influences and methods for
consolidation are explained. A short overview about consolidated financial
reporting of this book`s partner countries is presented.