When a subsidiary in a different line of business from that of the parent is consolidated, the separate financial statements of the subsidiary must be presented in the notes to the consolidated statements.

Question

Quizplus · Accepted Answer

Consolidation involves combining the financial statements of the parent and its subsidiaries into one set of financial statements for the entire group, without the requirement to present the separate financial statements of the subsidiary in the notes. The details about the consolidation process, including eliminations and adjustments, are typically disclosed, but separate financial statements of the subsidiaries are not required to be presented in the notes.

When a Subsidiary in a Different Line of Business from That