reclassification

Consolidation / Consolidation (FI-LC/EC-CS)

An adjustment entry between balance sheet and/or income statement items.

The items can be reclassified completely or at a predetermined percentage rate.

Example:

Portions of the inventory in an individual financial statement might be viewed as being "finished goods," whereas, from the corporate group's standpoint, they could be considered being "unfinished goods." In this case, the "finished goods" would have to be reclassified as "unfinished goods".