Assume That a Parent Company Has 4 Subsidiaries

question 13

Multiple Choice

Assume that a parent company has 4 subsidiaries.Under IFRS 3,which of the following statements is true?

• A)All 4 subsidiaries must be reported using the parent-company extension method.
• B)All 4 subsidiaries must be reported using the entity method.
• C)Each subsidiary must be reported using either the parent-company extension method or the entity method.Consistency is not required.
• D)All 4 subsidiaries must be reported using either the parent-company extension method or the entity method.Consistency is required.

---

Definitions:

Ghosting

A phenomenon in display screens where trailing images appear as a blur behind moving objects, due to slow response times.

Microsoft Accounts

Online accounts used to access Microsoft services and products, including Windows, Office, and OneDrive.

Local Account

A user account that is created and managed on a single computer or device, without the need for network authentication.

Local Account

A user account that is specific to a particular computer and doesn't require online authentication or connectivity.