Great Western Manufacturing Inc. ("GWM") was acquired by Great Eastern Holding Ltd) ("GEH") in 2019. The Vice President, Finance of GWM has asked you, the manager in charge of this year's audit, whether or not GWM has to prepare consolidated financial statements for the year ended December 31, 2019. GWM has about fifteen wholly owned subsidiaries and has in the past prepared consolidated financial statements.
Required:
Prepare a discussion around the need to prepare consolidated financial statements.

Question

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The Answer of Great Western Manufacturing Inc. ("GWM") was acquired by Great Eastern Holding Ltd) ("GEH") in 2019. The Vice President, Finance of GWM has asked you, the manager in charge of this year's audit, whether or not GWM has to prepare consolidated financial statements for the year ended December 31, 2019. GWM has about fifteen wholly owned subsidiaries and has in the past prepared consolidated financial statements.
Required:
Prepare a discussion around the need to prepare consolidated financial statements.