Which of the following statements regarding consolidation is false?
A)U.S.GAAP,with few exceptions,require a greater than 50 percent ownership before financial statements of related companies are consolidated into a single set of financial statements.
B)Under IFRS,consolidation is based on the power of the investor over the investees company.
C)Under U.S.GAAP,consolidation may occur more often in cases when a company has less than 50 percent ownership than under IFRS
D)None of the above

Question

Quizplus · Accepted Answer

Consolidation under U.S. GAAP occurs less frequently than under IFRS when a company has less than 50 percent ownership, making statement C false. Statements A and B are true.

Which of the Following Statements Regarding Consolidation Is False