Which of the following factors should be considered in order to determine whether an entity is a reporting entity when it is not obvious that users exist who would be dependent on the financial reports of the entity?
A) separation of management from those with economic interest in the entity
B) economic or political importance/influence
C) financial characteristics
D) separation of management from those with economic interest in the entity and economic or political importance/influence

Question

Quizplus · Accepted Answer

The determination of a reporting entity considers both the separation of management from those with economic interest and the entity's economic or political importance/influence, as these factors indicate the potential need for external users to rely on financial reports.

Which of the Following Factors Should Be Considered in Order