Merlion Limited is an entity listed in Singapore. Merlion Limited holds a 100% investment in Kookaburra Pty Ltd, an Australian based company, who in turn holds a 90% interest in Kangaroo Pty Ltd. Kookaburra Pty Ltd and the Kookaburra group (comprising Kookaburra and Kangaroo) are both non-reporting entities. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Kookaburra Pty Ltd, being a non-reporting entity, is not obligated to prepare consolidated financial statements. The status of being a non-reporting entity exempts it from the requirements that apply to reporting entities, such as the preparation of consolidated financial statements.

Merlion Limited Is an Entity Listed in Singapore