Three Sets of Financial Statements Usually Are Required from Subsidiaries;

question 53

Multiple Choice

Three sets of financial statements usually are required from subsidiaries; they do not include:

• A) statements prepared in response to investigations and queries from the Securities and Exchange Commission (SEC).
• B) statements prepared to meet the national accounting standards and procedures prescribed by law and other professional organizations in the host country.
• C) statements prepared to comply with the accounting principles and standards required by the home country.
• D) statements prepared to meet the financial consolidation requirements of the home country.

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Definitions:

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of public company financial statements.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

ROE

Return on Equity - a financial ratio that measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.