Which of the following users are consolidated financial statements most useful for?

Question

Quizplus · Accepted Answer

Consolidated financial statements are most useful for the stakeholders of the parent company as they provide a complete view of the financial performance and position of the entire group, including all subsidiaries. This helps in making informed decisions about investments, mergers, acquisitions, and divestitures. While bankers, creditors, and tax authorities may also find the information useful, their primary focus is on assessing creditworthiness and tax compliance, respectively. The stakeholders of the subsidiary companies may be interested in the financial performance of their individual entities, but they may not have access to the consolidated financial statements unless provided by the parent company.

Which of the Following Users Are Consolidated Financial Statements Most