Consolidation Journal Entries are accounting entries that merge the financial results of multiple entities into one overall financial statement. This type of entry is often used when a company acquires a subsidiary, or otherwise combines its results with another entity’s. This process allows companies to accurately report their finances to investors and shareholders in an organized, complete manner that provides a better insight into the firm’s financial health. Consolidation entries also allow managers to recognize changes in ownership, liabilities, and assets that might have otherwise gone unnoticed. In short, consolidation entries can help ensure accuracy and transparency when it comes to financial reporting.