The IASB and the AASB have chosen to adopt the ________ concept of consolidation, mainly because of the conceptual framework decision that financial statements are prepared for a wide range of users.
A)cost
B)entity
C)parent entity
D)proprietary

Question

Quizplus · Accepted Answer

The entity concept of consolidation is the most appropriate choice for the IASB and AASB, as it emphasizes the importance of presenting financial information for the whole entity, rather than just its parts. This is in line with the conceptual framework decision that financial statements are prepared for a wide range of users. The cost and proprietary concepts are not relevant to consolidation, and the parent entity concept focuses only on the financial statements of the controlling entity.

The IASB and the AASB Have Chosen to Adopt the ________