Which TWO of the following statements are correct when preparing consolidated financial statements?i) A subsidiary cannot be consolidated unless it prepares financial statements to the same reporting date as the parent.ii) A subsidiary with a different reporting date may prepare additional statements up to the group reporting date for consolidation purposesiii) A subsidiary’s financial statements can be included in the consolidation of the gap between the parent and the subsidiary reporting dates is five months or less.
Which TWO of the following statements are correct when preparing consolidated financial statements?i) A subsidiary cannot be consolidated unless it prepares financial statements to the same reporting date as the parent.ii) A subsidiary with a different reporting date may prepare additional statements up to the group reporting date for consolidation purposesiii) A subsidiary’s financial statements can be included in the consolidation of the gap between the parent and the subsidiary reporting dates is five months or less.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Which TWO of the following statements are correct when preparing consolidated financial
statements?
i) A subsidiary cannot be consolidated unless it prepares financial statements
to the same reporting date as the parent.
ii) A subsidiary with a different reporting date may prepare additional
statements up to the group reporting date for consolidation purposes
iii) A subsidiary’s financial statements can be included in the consolidation of
the gap between the parent and the subsidiary reporting dates is five
months or less.
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