If in the director’s opinion, subsidiary is immaterial, then it is acceptable to exclude it from the consolidation.
What is meant by material and immaterial? Please kindly explain, sir.
Ask the Tutor ACCA FR
Meaning of material and immaterial
Subjectivity is a major element here! Together with the necessity of the agreement of the auditors!
I imagine in practice that, for a subsidiary to be considered to be immaterial, it pretty much must be a dormant company - but I don't know!
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