18. Relationships between a parent and its subsidiaries a. shall be disclosed by an SME irrespective of whether there have been
18. Relationships between a parent and its subsidiaries a. shall be disclosed by an SME irrespective of whether there have been
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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18. Relationships between a parent and its subsidiaries
a. shall be disclosed by an SME irrespective of whether there have been related party transactions.
b. shall be disclosed by an SME only if there have been related party transactions.
c. is not disclosed by an SME because an SME cannot be a parent. If the SME is a subsidiary, it is required to use the full PFRSs as these are the required standards for use by the SME’s parent.
d. a or b as a matter of accounting policy choice.
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