Consolidated financial statements must be prepared using uniform accounting policies for like transactions and other events in similar circumstances.

Question

Quizplus · Accepted Answer

Consolidated financial statements are prepared by combining the financial statements of a parent company and its subsidiaries. To ensure consistency and accuracy, they need to be prepared using uniform accounting policies for similar transactions and events in similar circumstances. This helps to eliminate any confusion and present a clear picture of the entire entity's financial performance.

Consolidated Financial Statements Must Be Prepared Using Uniform Accounting Policies