Summer Company is a listed public company and has a 60% controlling interest in Winter Company. Winter Company is the parent of Starlight Company. In which of the following situations will Winter Company not be required to prepare consolidated financial statements?
A) Where it is likely that there are external users dependant on the information.
B) If Winter Company prepares separate financial statements that comply with IFRS.
C) If the other owners of Winter Company have consented to the non-preparation of consolidated financial statements.
D) Winter Company would never be required to prepare consolidated financial statements.

Question

Quizplus · Accepted Answer

C) If the other owners of Winter Company have consented to the non-preparation of consolidated financial statements, Winter Company may not be required to prepare consolidated financial statements. This is an exception allowed under certain accounting frameworks, recognizing that if all owners agree, the need for consolidated statements might be waived.

Summer Company Is a Listed Public Company and Has a 60