Economics · Accounting Standards
According to IFRS 10 (Consolidated Financial Statements), on what basis can a parent entity exclude a subsidiary from consolidation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1There is no exception; a controlled subsidiary cannot be excluded from consolidation on these grounds.✓
- 2The subsidiary was acquired and is held exclusively with a view to its subsequent disposal.
- 3The subsidiary operates in a country with severe long-term restrictions on transferring funds.
- 4The activities of the subsidiary are completely dissimilar to the rest of the group.
Correct answer
There is no exception; a controlled subsidiary cannot be excluded from consolidation on these grounds.
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