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Financial statements and the reporting entity

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial statements and the reporting entity

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
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  • November 15, 2018 at 4:07 pm #484917
    wyyy
    • Topics: 24
    • Replies: 22
    • ☆

    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
    Keymaster
    • Topics: 4
    • Replies: 6317
    • ☆☆☆☆☆

    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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