According to the 7th Directive of the EU

question 58

Multiple Choice

According to the 7th Directive of the EU,

• A) worldwide consolidation is required.
• B) companies must consolidate domestic subsidiaries, but foreign subsidiaries are optional.
• C) the more conservative cost method must be used to account for subsidiaries for which the parent owns less than a majority interest.
• D) assets must be revalued to book values in the case of an acquisition.

---

Definitions:

Observed Score

The actual score obtained by a participant on a test or measurement tool.

Actual Score

The true or observed value obtained from a measurement or assessment, not adjusted or transformed.

Error Score

The difference between observed scores and the true scores, indicating the precision of measurements.

Criterion Validity

The extent to which a measure is related to an outcome or criterion set as the standard.