Which of the following is incorrect regarding consolidated financial statements? a. Consolidation involves adding similar assets, liabilities, income and expenses of the parent and its subsidiaries. b. The subsidiary’s equity is eliminated and replaced with non-controlling interest. c. The consolidated profit pertains only to the parent. d. A parent is exempt from consolidation if it is in itself a subsidiary, its securities are not traded, and its parent produce PFRS (IFRS) consolidated financial statements.
Which of the following is incorrect regarding consolidated financial statements? a. Consolidation involves adding similar assets, liabilities, income and expenses of the parent and its subsidiaries. b. The subsidiary’s equity is eliminated and replaced with non-controlling interest. c. The consolidated profit pertains only to the parent. d. A parent is exempt from consolidation if it is in itself a subsidiary, its securities are not traded, and its parent produce PFRS (IFRS) consolidated financial statements.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 11Q
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Which of the following is incorrect regarding consolidated financial statements?
a. Consolidation involves adding similar assets, liabilities, income and expenses of the parent and its subsidiaries.
b. The subsidiary’s equity is eliminated and replaced with non-controlling interest.
c. The consolidated profit pertains only to the parent.
d. A parent is exempt from consolidation if it is in itself a subsidiary, its securities are not traded, and its parent produce PFRS (IFRS) consolidated financial statements.
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