Explain Why Percentage of Ownership an Investor Has in an Investee

question 21

Essay

Explain why percentage of ownership an investor has in an investee is not the only consideration when determining which entities must create financial statements.

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Definitions:

Meristematic

Referring to regions in plants where undifferentiated cells (meristems) are actively dividing, allowing for growth in length or diameter.

Woody Plants

Plants that are primarily made of wood and have a hard stem, usually trees and shrubs.

Perennials

Plants that live for more than two years, typically flowering annually after their initial maturity.

Evergreen

A plant that sheds leaves over a long period, so some leaves are always present. Compare with deciduous.