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.

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Definitions:

Exporter

A person or entity that sells goods or services produced in one country to another country.

Shoes

Footwear made from various materials, designed to protect and comfort the human foot while doing various activities.

Economic Well-Being

A measure of the financial health and stability of an individual, community, or nation, typically evaluated by factors such as income, employment, and access to resources.

Importer

An individual or company that buys goods from foreign countries for resale in its own market.