Reasons for the preparation of consolidated financial statements include:
A) Allowing comparison of the group with similar entities.
B) Supply of relevant information to investors in the parent entity.
C) Reporting of risks and benefits of the group as a single economic entity.
D) All of the options are correct.

Question

Quizplus · Accepted Answer

All of the options are correct. Consolidated financial statements allow for comparison with similar entities, provide relevant information to investors in the parent entity, and report the risks and benefits of the group as a single economic entity. Therefore, all options are valid reasons for the preparation of consolidated financial statements.

Reasons for the Preparation of Consolidated Financial Statements Include