Financial reports in work of each company represents a mirror of the bussiness itself of each company and the basis for further planning and determination for further goals of the bussiness itself. Basic financial reports are required to be prepared and presented to all companies which applys the Internationals and Croatian Financial Reporting Standards (IFRS and HSFI). Those companies are required to send financial reports to Fina (Financial Agency), either physically or electronically, for public announcment. On the other side, these companies which in group represents the main (parent) company are required to prepare and present consolidated financial reports. A group of company are assembled of one main (parent) company and one or more of dependent companies in which, mentioned above, main (parent) company has control (direct or indirect) of their bussiness basis on buyed stocks or participation in higher than 50%. Therefore, these main (parent) companies has obligation to prepareing and presenting consolidated yearly financial reports which presenting a bussiness of companies in the group like bussiness of one integrated company. Time limit for preparation of consolidated financial reports in Republic Croatia is by the end of the September or 30th September of the current year for the previous year. However, when preparing the consolidated financial reports, it is necessary to carry out the elimination or cancellation of certain items in the reports if the consolidation takes place after the merger date, because in that case, with the condition that the companies in the group are operated, certain transfers or transactions between the companies in the group are the subject of elimination.