When are consolidated financial statements not required?

Question

Quizplus · Accepted Answer

Consolidated financial statements are not required when a company buys the assets of another company because this transaction does not establish a parent-subsidiary relationship that would necessitate consolidation. Consolidation is typically required when one company has control over another, often indicated by owning more than 50% of the subsidiary's voting shares, not merely by asset acquisition.

When Are Consolidated Financial Statements Not Required