A former loophole (now closed)that existed under the former s.9 of the Corporations Law:
A) required the preparation of one set of consolidated accounts for the group.
B) required the preparation of separate accounts for each body corporate in the group.
C) gave the choice of using full consolidation, proportional consolidation or the equity method of accounting.
D) gave the choice of one set, or two or more sets, of consolidated accounts; or separate accounts for each body corporate; or a combination.
E) meant that no group accounting was required whatsoever.

Question

Quizplus · Accepted Answer

The former s.9 of the Corporations Law allowed for flexibility in the choice of accounting method, including the option of preparing one set, or multiple sets, of consolidated accounts or separate accounts for each body corporate or a combination. This loophole has since been closed, but it is important to note that at the time it provided companies with more options in how they presented their financial information.

A Former Loophole (Now Closed)that Existed Under the Former S