IFRS 10 states that a parent is not required to present consolidated financial statements for external reporting purposes if the parent meets certain conditions. Which of the following conditions is NOT correct?
A) Its ultimate or any intermediate parent produces financial statements available for public use and that comply with IFRS in which subsidiaries are consolidated.
B) It does not have any debt or equity instruments traded in a public market.
C) It has filed, or is in the process of filing, financial statements with a regulatory organization for the purposes of a public offering.
D) It is a wholly-owned subsidiary of another entity and its other owners have been informed about the parent not presenting consolidated financial statement.

Question

Quizplus · Accepted Answer

The condition that is not correct is option C. IFRS 10 states that a parent is required to present consolidated financial statements for external reporting purposes unless it meets certain conditions. However, option C is not one of these conditions, as filing financial statements with a regulatory organization for the purposes of a public offering does not exempt the parent from presenting consolidated financial statements.

IFRS 10 States That a Parent Is Not Required to Present