Assets in the consolidated statement of financial position must be shown as follows:

Question

Quizplus · Accepted Answer

Assets in the consolidated statement of financial position should be shown at their historical cost to the group, which is the total cost of the asset to the subsidiary company plus any adjustments made in the consolidation process. This provides a more accurate picture of the assets held by the consolidated group as a whole. Market value or parent cost would not be appropriate as it does not reflect the cost to the group as a whole. Market value to the subsidiary would also not be appropriate as it does not reflect the value of the asset to the consolidated group.

Assets in the Consolidated Statement of Financial Position Must Be