Answered: Determine which of following entities…

Determine which of following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with PFRS 10. Explain your answer.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: Audit Evidence

Section: Chapter Questions

Problem 15CYBK

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Question

Determine which of following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with PFRS 10. Explain your answer.

I. Entity LOL Ltd. that has an immaterial participation of 90% in equity interest of YIE Ltd.

II. Entity V, an investment entity, acquired an investment in a subsidiary
(entity Y). Entity Y provides services that is related to Entity V’s investment
activities.

III. Entity C Ltd. that has an interest of 20% in equity shares of ACV Ltd.

IV. Entity B ABC Group presents consolidated financial statements
which includes Entity B. Entity B is itself a parent because it has controlling interests in 8 other entities. Entity B does not have equity traded in a regulated market but is waiting for the approval of listing its debt in the Philippine Stock Exchange.

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