In general, consolidated financial statements should be prepared

Question

Quizplus · Accepted Answer

Consolidated financial statements should be prepared when a corporation owns more than 50% of the common stock of another company, as this represents a controlling interest in the other company. This is because the parent company has the ability to influence the financial and operating decisions of the subsidiary company, and therefore the consolidated financial statements provide a more accurate picture of the overall financial position and performance of the group as a whole.

In General, Consolidated Financial Statements Should Be Prepared