Financial statements and the reporting entity

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November 15, 2018 at 4:07 pm #484917
wyyy
Member
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Hi,

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?

Thank you
November 21, 2018 at 8:24 pm #485422
P2-D2
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Hi,

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.

Thanks
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