deconsolidation
dee-kon-sol-i-DAY-shun
Definition
The process or act of removing a subsidiary or business entity from the consolidated financial reporting of a parent company.
Etymology
Derived from the prefix 'de-' meaning 'to reverse or undo', combined with 'consolidation', which comes from the Latin 'consolidare' meaning 'to make firm or solid'. It entered the business lexicon to describe the structural separation of financial reporting.
In the news
The article mentions that Altera's revenue shift is linked to its deconsolidation, meaning it was removed from the parent company's unified financial statements. This is significant because it clarifies why specific revenue is now categorized as external rather than intercompany.
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