Which of the following pertaining to Consolidated Financial Statements is correct?
A) The preparation of consolidated Financial Statements means that the companies involved cease to operate as separate legal entities.
B) The preparation of Consolidated Financial Statements is at the Parent Company's discretion.
C) When one company has control over another, Consolidated Financial Statements must be prepared for the combined entity.
D) Before preparing Consolidated Financial Statements, a subsidiary's Financial Statements prior to the date of acquisition must be restated.

Question

Quizplus · Accepted Answer

Consolidated Financial Statements are required when one company has control over another, typically through ownership of more than 50% of the voting shares, to present the financial position and results of the parent and its subsidiaries as a single entity.

Which of the Following Pertaining to Consolidated Financial Statements Is