A consolidated entity is defined as:
A) the company and its subsidiaries at the end of the financial year. Subsidiaries are companies and trusts as defined in terms of the Corporations Act.
B) a combined entity constituted by a parent entity and its controlled entities.
C) a trust or partnership registered as a management investment scheme and all the entities it controls at the end of the financial year.
D) the parent company, non-controlling interests and subsidiaries owned by that parent company as at the end of the financial year.

Question

Quizplus · Accepted Answer

A consolidated entity is a combination of a parent entity and its subsidiaries. In other words, it is a single entity made up of multiple entities that are controlled by the parent company. This definition matches option B. Option A refers only to the company and its subsidiaries, whereas option C refers specifically to registered trusts or partnerships. Option D includes non-controlling interests, which are not necessarily included in a consolidated entity.

A Consolidated Entity Is Defined As