Group accounts, also known as consolidated financial statements, are created to provide the financial performance and position of a parent company and its subsidiaries as if they were a single entity. These accounts eliminate intra-group transactions to avoid double-counting revenues or expenses within the group. For instance, if a parent company holds controlling interest in one or more subsidiaries, their individual financial reports are consolidated to present a comprehensive view of the group as a whole. Group accounts are important for stakeholders, such as investors and analysts, who need a clear view of the overall performance, risks, and financial health of the business group. For example, if Parent Inc. owns 80% of Subsidiary Ltd., the group accounts would consolidate the revenues, expenses, assets, and liabilities of both companies, while excluding transactions between them, like internal sales. This ensures clarity and consistency in financial reporting, adhering to principles like the International Financial Reporting Standards (IFRS).