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The primary sources of guidance on parent company financial statements include:
Consolidated financial statements are the general-purpose financial statements of a parent company that has one or more subsidiaries. In certain circumstances, parent company-only financial statements may be required in addition to consolidated financial statements. The existence of preferred stockholders, loan or other agreements, or other special requirements (e.g., reporting requirements for not-for-profit entities such as healthcare providers and statutory reporting requirements for downstream noninsurance holding companies) may necessitate the preparation of financial statements for the parent company on a stand-alone basis. Additionally, as further discussed below, Regulation S-X Rule 5-04 requires parent company financial statements (Schedule I) when certain conditions are met.
Parent company financial statements should not be used as a substitute for consolidated financial statements. Parent company financial statements should generally be presented in the same report with the reporting entity’s consolidated financial statements (e.g., SEC filings). ASC 810-10-45-11 provides the authoritative basis for parent company financial statements under US GAAP:

ASC 810-10-45-11

In some cases parent-entity financial statements may be needed, in addition to consolidated financial statements, to indicate adequately the position of bondholders and other creditors or preferred shareholders of the parent. Consolidating financial statements, in which one column is used for the parent and other columns for particular subsidiaries or groups of subsidiaries, often are an effective means of presenting the pertinent information. However, consolidated financial statements are the general-purpose financial statements of a parent having one or more subsidiaries; thus, parent-entity financial statements are not a valid substitute for consolidated financial statements.

Regulation S-X Rule 5-04 requires parent company financial statements (Schedule I) when the restricted net assets of consolidated subsidiaries exceed 25% of consolidated net assets as of the most recent fiscal year end. When the significance threshold is met, SEC registrants should present condensed financial information as prescribed by Regulation S-X Rule 12-04 for the parent company in Schedule I as of the same dates and for the same periods as the consolidated financial statements. SEC FRM 2810.1 stipulates that “registrants should present the information required by S-X 12-04 as an S-X schedule, except bank holding companies, which must present the S-X 12-04 information in the financial statement footnotes.” Irrespective of the presentation alternative, the parent company-only financial statements should be audited. Refer to SEC FRM 2810 for additional guidance.
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