Asked by
Purushoth Kumar
on Nov 30, 2024
Verified
If a parent entity is a reporting entity the group must also be a reporting entity.
Reporting Entity
A reporting entity is an entity or economic unit for which financial statements are prepared and presented to users.
Parent Entity
A company that has control, directly or indirectly, over other companies or subsidiaries.
- Recognize the relationship between control and the obligation to prepare consolidated financial statements, including the impact of losing control over a subsidiary.
Verified Answer
HB
Learning Objectives
- Recognize the relationship between control and the obligation to prepare consolidated financial statements, including the impact of losing control over a subsidiary.