A major mining company owns a mining subsidiary in South America, where the government enforces stringent control over cash payments outside the country.The parent cannot control all the assets of the subsidiary, despite owning a majority of the voting shares, but should prepare consolidated statements with the subsidiary.

Question

Quizplus · Accepted Answer

The parent company cannot prepare consolidated statements if it does not have control over the subsidiary's assets, even if it owns a majority of the voting shares. Control is a key requirement for consolidation.

A Major Mining Company Owns a Mining Subsidiary in South