Which consolidation method should be used in preparing consolidated financial statements in accordance with IFRS?
A) Proportionate consolidation method.
B) Parent company method.
C) New entity method.
D) Either identifiable net assets or fair value enterprise method.

Question

Quizplus · Accepted Answer

According to IFRS, both identifiable net assets and fair value enterprise method are allowed for preparing consolidated financial statements. The other two methods (proportionate consolidation and parent company) are not permitted under IFRS. Therefore, the best choice is either identifiable net assets or fair value enterprise method.

Which Consolidation Method Should Be Used in Preparing Consolidated Financial