Under which of the following scenarios would the preparation of Consolidated Financial Statements NOT be justified?
A)A Company owns enough convertible securities,which,when exercised would provide it with more than 50% of B's voting shares.
B)A Company has purchased all of the assets of B Company.
C)50% of B's assets have been placed under the custody of a trustee.
D)The workers of a Subsidiary's plant went on strike for an undetermined period of time.

Question

Quizplus · Accepted Answer

The placement of assets under a trustee does not affect the ownership or control of the company, so it does not justify not preparing consolidated financial statements.

Under Which of the Following Scenarios Would the Preparation of Consolidated