When a subsidiary's total assets are more than 25% of total consolidated assets, the separate financial statements of the subsidiary must be presented in the notes to the consolidated statements.

Question

Quizplus · Accepted Answer

The requirement to present separate financial statements of a subsidiary in the notes to the consolidated financial statements is not determined by the subsidiary's asset size relative to the total consolidated assets. Disclosure requirements vary by jurisdiction and accounting framework, but typically focus on significant events, transactions, or relationships, rather than mandating separate financial statements based on asset size thresholds.

When a Subsidiary's Total Assets Are More Than 25% of Total