Assume That a Parent Company Has Four Subsidiaries

question 20

Multiple Choice

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

• A)All four subsidiaries must be reported using the parent-company extension method.
• B)All four 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 four subsidiaries must be reported using either the parent-company extension method or the entity method. Consistency is required.