Before undertaking the consolidation process, it may be necessary to make the following adjustments in relation to the individual statements if the end of the subsidiary's financial period does not coincide with the:
A) the subsidiary will prepare its own financial statements as at the end of the parent's financial period.
B) the parent will prepare its own financial statements as at the end of the subsidiary's financial period.
C) the parent will prepare its own financial statements as at 30 June if the end of the parent's reporting period is not 30 June.
D) the subsidiary will prepare its own financial statements as at 30 June if the end of the parent's reporting period is not 30 June.

Question

Quizplus · Accepted Answer

When the financial periods of a parent and its subsidiary do not coincide, the subsidiary is often required to prepare additional financial statements to align with the end of the parent's financial period for consolidation purposes. This ensures that the consolidated financial statements reflect a uniform reporting period across the group.

Before Undertaking the Consolidation Process, It May Be Necessary to Make