If a parent loses control of a subsidiary during a financial year,that subsidiary's results are ignored for consolidation purposes.

Question

Quizplus · Accepted Answer

The statement is incorrect. Even if a parent loses control of a subsidiary during a financial year, the subsidiary's results must be included in the consolidated financial statements for the portion of the year it was under the parent's control. However, the subsidiary's financials should be presented separately from the parent's financials in the consolidated financial statements.

If a Parent Loses Control of a Subsidiary During a Financial