Asked by
Stefanic Livinalli
on Oct 16, 2024
Verified
IFRS 10 states that a parent is not required to present consolidated financial statements for external reporting purposes if the parent meets certain conditions. Which of the following conditions is NOT correct?
A) Its ultimate or any intermediate parent produces financial statements available for public use and that comply with IFRS in which subsidiaries are consolidated.
B) It does not have any debt or equity instruments traded in a public market.
C) It has filed, or is in the process of filing, financial statements with a regulatory organization for the purposes of a public offering.
D) It is a wholly-owned subsidiary of another entity and its other owners have been informed about the parent not presenting consolidated financial statement.
IFRS 10
Refers to the International Financial Reporting Standard that provides guidance on the consolidation of all entities that an investor controls, defining the principles of control and how it should be assessed.
Consolidated Financial Statements
Financial statements that provide a comprehensive overview of a company's financial position by combining the accounts of the parent company with those of its subsidiaries.
Regulatory Organization
An entity established by a government to regulate specific activities, industries, or professions.
- Comprehend the legal and regulatory obligations concerning disclosure in business mergers.
Verified Answer
BK
Learning Objectives
- Comprehend the legal and regulatory obligations concerning disclosure in business mergers.