Where a company (or other entity) controls another company (or other entity), consolidated financial statements must be prepared for the economic entity.

Question

Quizplus · Accepted Answer

According to accounting standards, when a company (or other entity) has control over another company (or other entity), consolidated financial statements must be prepared for the economic entity. These statements provide a comprehensive view of the financial performance and position of the entire group, rather than just the individual entities.

Where a Company (Or Other Entity) Controls Another Company (Or