When a company owns more than 50% of the ordinary shares of another company,

Question

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When a company owns more than 50% of the ordinary shares of another company, consolidated financial statements are prepared. This means that the financial statements of both companies are merged into one set of financial statements that reflect the financial position and performance of the group as a whole. This is done in order to provide a true and fair view of the financial affairs of the group, as the controlling company has significant influence over the operations of the subsidiary.

When a Company Owns More Than 50% of the Ordinary