What is the meaning of consolidated financial statments and when does the firm look to apply this step?

First of all, a Consolidated FS is only applicable if the company have more than one owned entity or have several controlled companies.
Meaning it has a parent entity and its subsidiaries.
A consolidated financial statements are the financial reports of the group (the parent company and the subsidiaries) which is presented as one.
It is obviously very useful for the investors/owners of the company to look after this reports to better understand the present situation of their investment and for future decision making.

First of all, I have been preparing consolidated Financials Statement for over 3 years. At least each quarter we prepare Consolidated Financial.

 

In Consolidated Income Statement, all inter company Sales and Purchases are eliminated.

 

In Consolidated Balance Sheet, Due to & Due from inter company are eliminated, Also We need to Calculate Investment movement for the period, Equity and Investment with in the Inter companies are also eliminated.

consuldated F.S when you have 2 systems you work in the first refer to the company you work in and the other refer to the owner company.
after that you will have 3 f.s (1)f.s refer to the company you work in.
(2)f.s refer to the owner who had the company.
(3)f.s will show the twice.

The combined financial statements of a parent company and its subsidiaries.

consuldated ??? OMG..
you will be rewarded +5 for my reply.
Good luck dear as "Fortune favours the brave".