The Exposure Draft introduces the concept of the boundary of a reporting entity in the form of direct control (‘unconsolidated’ financial statements) and both direct and indirect control (‘consolidated’ financial statement)
What is the meaning of this sentence? Why is direct control ‘unconsolidated’ financial statement?
I believe that unconsolidated financial statements are where the parent owns more than 50% of the subsidiary but it is not consolidated and is instead shown as an investment.