The presumption that consolidated statements are more meaningful than separate statements and are necessary for a fair presentation can be overcome by an assertion to the contrary by management in the notes to the financial statements.

Question

Quizplus · Accepted Answer

The presumption that consolidated financial statements are more meaningful and necessary for a fair presentation cannot be overcome simply by management's assertion in the notes to the financial statements. Generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS) require consolidation when certain criteria are met, regardless of management's assertions.

The Presumption That Consolidated Statements Are More Meaningful Than Separate