Corporate Accounting Assignment, OUM, Malaysia Present the financial affairs of a parent company and its legally distinct subsidiaries as if they were a single unified economic entity
University | Open University Malaysia (OUM) |
Subject | Corporate Accounting |
The purpose of consolidated financial statements is to ‘present the financial affairs of a parent company and its legally distinct subsidiaries as if they were a single unified economic entity (Huefner and Largay III, 1990, p. 26).
However, problems persist in relation to consolidated financial reporting such as ‘control when ownership is absent; technical issues of asset valuation; goodwill recognition, and minority interest presentation; and the need for separate reporting in addition to consolidated financial statements (Huefner and Largay III, 1990, p. 38).
The international financial reporting standard that provides guidance on consolidated financial statements is IFRS 10 (the Australian equivalent is AASB 10).
The objective of IFRS 10/AASB 10 Consolidated Financial Statements is to ‘establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities’ (AASB, 2015) There have been positive as well as negative reports on the implementation of IFRS 10/AASB 10.
For example, it leads to an increase in consolidated statements quality (Muller, 2014); the effects of the adoption are associated with financial reporting incentives (Bedford et al., 2022); or that consolidated financial statements do not possess the information content frequently attributed to them in the literature (Walker, 1976).
b. According to an article published by Huefner and Largay III (1990), one of the issues regarding consolidated financial reporting is ‘consolidation policy: the circumstances under which subsidiaries should or should not be consolidated.’ (Huefner and Largay III, 1990, p. 28).
Why do the authors think it is an issue? You must support your answer with published articles and journals.
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
Get expert corporate accounting assignment help from Assignment Helper MY. Your trusted online assignment assistance platform. Boost your grades at Open University Malaysia (OUM) with our tailored solutions and comprehensive support. Our skilled accounting professionals will ensure accurate financial analysis, report preparation, and compliance with relevant regulations. And that's not all – we excel in HMEF5113: Statistics For Educational Research Assignment too. With timely delivery and affordable prices, we guarantee a stress-free academic experience. You also avail of our experts for top Programming Assignment Help.
Recent Solved Questions
- PAD240 Government and Politics Assignment, UTM, Malaysia The Dewan Rakyat is the lower house of the bicameral Parliament, the federal legislature of Malaysia
- Business Research Methods Research Paper, UM, Malaysia To find out what are the expectations of the patient of the Malaysian government hospital
- UNIM513: Research Methodology Research Paper, UTN, Malaysia Identify problems or issues in business and management and to justify the need for research
- SFUF0393: Fundamental in Psychology Essay, UIU, Malaysia Discuss the basic psychology of human behavior. Apply the appropriate reasoning processes in arriving at conclusions
- Project Management Assignment, LUC, Malaysia Construction is one of the important industries which contributes to the economic growth in Malaysia
- Engineering Mathematics Report, UTM, Malaysia Solve the following initial value problem by using the Taylor series method and improved Euler’s method Compare your results with the exact solution
- LEI2043: CURRENT ISSUES IN LAW ENFORCEMENT Assignment, SUC, Malaysia Based on the above article, kindly explain and elaborate what is the extent of discretionary powers of a police officer
- Identify and discuss the reasons for Asda to conduct workforce planning: Human Resource Management Essay, UTM, Malaysia
- Economics Essay, UON, Malaysia India’s income has grown at its slowest rate in almost five years, according to the latest data released by the government
- MAT240S: Math’s Statistics Assignment, SU, Malaysia The following data was collected from a random sample of students These data represent their commuting distance (in km) per week