Determine which of the following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with
Question:
Determine which of the following entities SHALL and SHALL NOT prepare consolidated financial statements in accordance with PFRS 10. Explain your answer.
I. Entity LOL Ltd. has an immaterial participation of 90% in the equity interest of YIE Ltd.
II. Entity V, an investment entity, acquired an investment in a subsidiary (entity Y). Entity Y provides services that are related to Entity V’s investment activities.
III. Entity C Ltd. has an interest of 20% in equity shares of ACV Ltd.
IV. Entity B ABC Group presents consolidated financial statements which include Entity B. Entity B is itself a parent because it has controlling interests in 8 other entities. Entity B does not have equity traded in a regulated market but is waiting for the approval of listing its debt in the Philippine Stock Exchange.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain