In the following situation, discuss which entity, if any, may be a parent required to prepare consolidated financial statements under AASB 10/IFRS 10.Runner Ltd owns 80% of the shares of Beep Beep Ltd, which owns 100% of the shares of Looney Ltd. All companies prepare their own financial reports under AASB/IFRS accounting standards. Although the shares of Beep Beep Ltd are not traded on any public stock exchange, its debt instruments are publicly traded.

Answered: In the following situation, discuss…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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In the following situation, discuss which entity, if any, may be a parent required to prepare consolidated financial statements under AASB 10/IFRS 10.
Runner Ltd owns 80% of the shares of Beep Beep Ltd, which owns 100% of the shares of Looney Ltd. All companies prepare their own financial reports under AASB/IFRS accounting standards. Although the shares of Beep Beep Ltd are not traded on any public stock exchange, its debt instruments are publicly traded.

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

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IFRS

IFRS or International Financial Reporting Standards refers to a globally accepted set of accounting and financial guidelines for the preparation and presentation of financial statements. It ensures consistency in accounting practices so that financial records can be compared between different reporting units around the world. Over the years, it has established itself as the new global accounting standard.

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