Where a Parent Is Exempted from Preparing Consolidated Financial Statements

question 45

True/False

Where a parent is exempted from preparing consolidated financial statements under AASB 10/IFRS 10 Consolidated Financial Statements, they are still required to present separate financial statements under AASB 127/IAS 27 Separate Financial Statements.

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Definitions:

Shareholder Model

A theory of corporate governance focusing on the interests of shareholders, prioritizing financial returns over broader social or ethical considerations.

Stakeholder Model

A theory of organizational management and business ethics that addresses morals and values in managing an organization, centering on the interests of all stakeholders.

Corporate Governance

The system by which companies are directed and controlled, involving the mechanisms, processes, and relations used by various parties to control and to operate corporations.

Accountability

The duty of a person or entity to be accountable for their actions, assume responsibility for those actions, and openly share the outcomes.