The so-called “External Partners” in the groups of corporations: a model of presentation in the consolidated statements

This paper studies, on the one hand, theories set out around the consideration of the external partners in the consolidated information and on the other hand, financial models that discuss the convenience of the separation or not of the different elements that form part of the liabilities of the balance sheet of the companies. A Model is proposed, the External Partners Model, which financially argues a certain presentation and processing of such and that, in our opinion, facilitates the analysis of the consolidated financial statements. This model is based on two hypotheses: (1) the economic and financial variables are not independent and (2) the value of the company depends, among other factors, of the type of sources that constitute their capital. These two hypotheses will imply that a separation should be included in the consolidated balance sheet between equity and liabilities as they are different sources of capital and then its separation will give relevant information to its users.

It could be said that Consolidated Financial statements try to reflect with a general perspective, the total amount of resources of a group of companies that are related to each other and put under a common direction. However, the problem that is found, in relation to the concept of Consolidation, is that this one can be understood of different ways according to the approach or interpretation given to consolidated information. Briefly, and even though in later sections these different theories can be subject of a more detailed study, it is possible to say that as for the processing of the consolidated information, there are diverse positions in the doctrine¹:

a) the one that conceives consolidated financial statements as a prolongation of the parent company’s, well-known as Parent Company Theory. This theory is an exposition of a financial character.

b) the one that conceives consolidated financial statements as a reflection of the economic and financial situation of the group, doing without the distinction between dominant and filial or parent or dependent company. Its an exposition of an economic character ant it is known as Entity Theory.

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