If a subsidiary's reporting date does not coincide with the parent entity's reporting date,adjustments must be made for the effects of significant events that occur between the two reporting dates as long as the reporting dates differ by no more than:
A)one month
B)three months
C)four months
D)six months

Question

Quizplus · Accepted Answer

According to Financial Accounting Standards Board (FASB), adjustments must be made if the subsidiary's reporting date is within three months of the parent entity's reporting date. If the difference in reporting dates is more than three months, then consolidated financial statements are not required.

If a Subsidiary's Reporting Date Does Not Coincide with the Parent