For the purposes of consolidated financial reporting, a group is:
A) an entity that has no subsidiaries;
B) a parent entity and all its subsidiaries;
C) an entity that has one or more subsidiaries;
D) a subsidiary entity of another entity.

Question

Quizplus · Accepted Answer

A group, for consolidated financial reporting purposes, consists of a parent entity and all its subsidiaries. This is because consolidated financial statements present the financial position, performance, and cash flows of a group of entities as if they were a single economic entity. Therefore, it is necessary to include all the entities that are controlled by the parent entity to provide a comprehensive view of the group's financial position and performance.

For the Purposes of Consolidated Financial Reporting, a Group Is