If a company prepares a consolidated income statement, IFRS requires that net income be reported for
A) the majority interest only.
B) the minority interest only.
C) both the majority interest and the minority interest.
D) as a single amount only.

Question

Quizplus · Accepted Answer

IFRS requires that the net income for both the majority interest and the minority interest be reported in a consolidated income statement. This is to reflect the economic reality that the group as a whole earns the income and to provide information to stakeholders about the performance of the subsidiary as well as the overall group.

If a Company Prepares a Consolidated Income Statement, IFRS Requires