The process of preparing consolidated financial statements requires that:
A) the individual financial statements of the parent and all its subsidiaries use uniform accounting practices for like transactions and other events in similar circumstances.
B) the subsidiaries must prepare, if practicable, financial information as of the same date and for the same period as the financial statements of the parent.
C) the individual financial statements of the parent and all its subsidiaries use uniform accounting policies for like transactions and other events in similar circumstances.
D) the individual financial statements of the parent and all its subsidiaries use uniform accounting policies for like transactions and other events in similar circumstances and that the subsidiaries must prepare, if practicable, financial information as of the same date and for the same period as the financial statements of the parent.

Question

Quizplus · Accepted Answer

Both options A and B are included in option D. Therefore, option D is the best choice as it covers all necessary requirements for preparing consolidated financial statements.

The Process of Preparing Consolidated Financial Statements Requires That