If a subsidiary's reporting date does not coincide with the parent entity's reporting date, adjustments must be made for the effects of significant transactions that occur between the two reporting dates provided the reporting dates differ by no more than:
A) 1 months.
B) 3 months.
C) 6 month.
D) 9 months.

Question

Quizplus · Accepted Answer

According to IFRS 10, if the reporting date of the subsidiary is different from that of the parent entity and the difference is not more than 3 months, adjustments must be made for the effects of significant transactions that occur between the two reporting dates. Therefore, option B is the correct answer.

If a Subsidiary's Reporting Date Does Not Coincide with the Parent