Which Consolidation Theory Should Be Used in Preparing Consolidated Financial

question 9

Multiple Choice

Which consolidation theory should be used in preparing consolidated financial statements in accordance with IFRS?

• A) Proprietary Theory.
• B) Parent Company Theory.
• C) Proportionate Consolidation.
• D)Either Entity Theory or Parent Company Extension Theory.

---

Definitions:

Sentiments

Deep feelings or emotions that influence an individual's attitudes and actions toward certain ideas, objects, or people.

Dynamic Motivating

The process of being driven to fulfill changing needs, desires, and goals, which is fluid and adapts over time.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are said to share.

Social Problems

Issues within a society that are recognized by a significant number of people as being undesirable or needing improvement.