Presto hospitality is based in the United States and has subsidiaries in Brazil in Australia. As a non-public company with a calendar year and Presto is required to comply with ASC 842 for its consolidated financial statement starting with the year ending 12/31/20.

1. Research the reporting framework applicable to the Brazil and Australia-based subsidiaries assume they follow the same reporting framework that listed or public companies and their jurisdictions would apply.

2. What is the effective date for the subsidiaries to apply revised lease accounting requirements? What standards must each apply?

3. What are key areas of reconciliation that will be required to consolidate the Brazilian and Australian financial statements into the U.S. Consolidated report?

Answer rating: 100% (QA)

1 When a single business manages one or more entities IFRS 10 shows the idea of reporting and produc... View the full answer