How Does U

question 13

Multiple Choice

How does U.S.GAAP differ from IFRS with respect to presenting consolidated financial statements?

• A)U.S.GAAP requires all controlled subsidiaries to be consolidated, whereas IFRS allows for optional consolidated financial statements.
• B)IFRS excludes subsidiaries acquired for disposal within one year from the consolidation requirement, whereas U.S.GAAP requires all controlled subsidiaries to be consolidated.
• C)U.S.GAAP allows a company to exclude subsidiaries it is holding for sale from the consolidation process.
• D)IFRS requires the parent company to own 50% of the voting shares of the subsidiary before consolidation is allowed.

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Definitions:

Downward Communication

A form of organizational communication that flows from higher levels of the hierarchy (such as managers) to lower levels (like employees), often used to provide instructions, feedback, or information about decisions.

Build Relationships

The process of developing and nurturing connections, interactions, or bonds between individuals or entities.

Upward Communication

The process of information flow from the lower levels of a hierarchy to the upper levels within an organization.

Higher Level

Refers to something that is of a greater complexity, advancement, or sophistication compared to something else.