If a Parent Entity Chooses Not to Prepare Consolidated Financial

question 19

Multiple Choice

If a parent entity chooses not to prepare consolidated financial statements, IAS 27 Separate Financial Statements requires the following disclosures in the separate financial statements of the parent: I. The name, country of residence and voting power of the directors of the parent.
II) That the exemption from consolidation has been used.
III) A list of significant investments including the proportion of ownership.
IV) A description of the method used to account for the investments.

• A) I, II and IV only;
• B) II, III and IV only;
• C) II and III only;
• D) IV only.

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Definitions:

Securities and Exchange Act

A U.S. law enacted in 1934 that governs the securities industry, aiming to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Directors

Persons chosen by the corporation's shareholders to supervise management and make important strategic choices for the company.

Due Diligence Defense

A legal defense used in securities law, asserting that all required investigations and disclosures were made appropriately.

Audited Financial Statements

Financial reports that have been reviewed and verified by an independent auditor for accuracy and compliance with accounting standards.