The disaggregated format of presenting consolidated statements is required if the subsidiary is in an unrelated line of business from the parent and its other subsidiaries.

Question

Quizplus · Accepted Answer

Consolidated financial statements are designed to present the financial position and results of operations of a parent and its subsidiaries as if they were a single economic entity, regardless of the line of business of the subsidiaries. The requirement for disaggregation typically relates to segment reporting within the notes to the financial statements, rather than affecting the consolidation process itself.

The Disaggregated Format of Presenting Consolidated Statements Is Required If