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
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 …