Which of the following statements is true regarding the consolidation process under ASPE?
A)Under ASPE, the parent has the option of not consolidating with its subsidiary.
B)Under ASPE, the parent must consolidate with its subsidiary.
C)Under ASPE, the parent must use the cost or the equity method to account for its subsidiary.
D)None of the above is true.

Question

Quizplus · Accepted Answer

Under ASPE (Accounting Standards for Private Enterprises) in Canada, a parent company has the option to not consolidate its financial statements with its subsidiary, unlike IFRS which requires consolidation.

Which of the Following Statements Is True Regarding the Consolidation