A parent company uses IFRS and has a subsidiary whose books are maintained following U.S. GAAP. The consolidated financial statements of the parent include the subsidiary's accounts, reported using:

Question

Quizplus · Accepted Answer

When consolidating financial statements, the parent company must convert the subsidiary's accounts to the parent's accounting framework, which in this case is IFRS, to ensure consistency across the consolidated financial statements.

A Parent Company Uses IFRS and Has a Subsidiary Whose