Consolidation Flashcards

1
Q

Consolidated financial statements are required when one entity has effective control over another entity. An entity has control when:

A
  1. Greater than 50% ownership, directly or indirectly.

2. It is the principal beneficiary of a VIE.

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2
Q

The objective of consolidated statements is

A

to present the financial statements of entities under common control as if one economic entity.

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