Which of the following describes a situation when a parent company would not consolidate a foreign subsidiary?
A)Restrictions on foreign exchange in the foreign country.
B)Restrictions on transfers of property in the foreign country.
C)Other governmentally imposed uncertainties.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

All of the choices are correct reasons for a parent company to not consolidate a foreign subsidiary. Restrictions on foreign exchange or transfers of property, as well as other governmentally imposed uncertainties, can make it difficult for a parent company to have control over its foreign subsidiary's operations and financial statements. As a result, the parent company may not be able to meet the criteria for consolidation under generally accepted accounting principles.

Which of the Following Describes a Situation When a Parent