A Ltd controls B Ltd who in turn controls C Ltd.B Ltd and the B Ltd group are not reporting entities.A Ltd is a reporting entity.Consolidated financial statements will be required to be prepared for:
A) The A group
B) The B group
C) Both the A Group and the B Group
D) Not required

Question

Quizplus · Accepted Answer

As A Ltd is a reporting entity, consolidated financial statements will be required to be prepared for the A group. B Ltd and its group are not reporting entities and therefore do not require consolidated financial statements. C Ltd is controlled by B Ltd and should be consolidated in B Ltd's financial statements, but as B Ltd is not a reporting entity, there is no requirement for consolidated financial statements for the B Group.

A Ltd Controls B Ltd Who in Turn Controls C