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.

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Definitions:

Legislative Attention

This refers to the focus or consideration that legislative bodies give to particular issues, policies, or laws, potentially leading to new enactments or amendments to existing laws.

Real Property

Land, as well as anything permanently attached to it, such as buildings and other structures.

Personal Property

Items of property that are movable and not fixed to land, such as vehicles, furniture, and electronic equipment.

Remainderman

A person who is entitled to inherit or receive property upon the termination of the life estate of the current holder.