Which of the Following Is Not a True Statement

question 9

Multiple Choice

Which of the following is not a true statement?

• A)ARB 51 prohibited consolidation of a subsidiary company unless majority ownership exists.
• B)ARB 51 took the view that majority ownership per se did not indicate control if ownership were temporary or if for some reason control did not reside with the majority owner.
• C)ARB 51 permitted separate reporting for heterogeneous subsidiaries instead of consolidation.
• D)ARB 43 permitted separate reporting for foreign subsidiaries instead of consolidation.

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Definitions:

Period of Ownership

The duration for which an asset is owned by an individual or entity, affecting capital gains for tax purposes.

Estimated Useful Life

The expected timeframe during which an asset is likely to be functional and useful for its intended purpose before it becomes obsolete.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear, and tear, or obsolescence.

Depreciable Cost

The cost of a plant asset less its salvage value.