The Financial Statements of KCP America, a U

question 183

Multiple Choice

The financial statements of KCP America, a U.S. entity, are prepared for inclusion in the consolidated financial statements of its non-U.S. parent. These financial statements are prepared in conformity with the accounting principles generally accepted in the parent's country and are for use only in that country. How may KCP America's auditor report on these financial statements?

• A) A U.S.-style report (unmodified). II. A U.S.-style report modified to report on the accounting principles of the parent's country. III. The report form of the parent's country.
• B) Option A
• C) Option B
• D) Option C
• E) Option D

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Definitions:

Restatements

A comprehensive reworking of existing laws or legal principles, clarifying, updating, and simplifying the law, typically in the United States, and organized by subject matter.

Common Law

The law that is made and applied by judges.

Binding

in legal terms, refers to an agreement, contract, or decision that is legally enforceable and must be adhered to by the parties involved.

Declaratory Judgment Statutes

Laws that allow a court to make a declaration about the legal relationships and duties between parties before an actual dispute arises.