Accounting · Consolidated Financial Statements (IFRS 10)
Under what specific circumstances is a parent company exempt from preparing consolidated financial statements, in accordance with IFRS 10 Consolidated Financial Statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The parent company has lost control over the subsidiary due to severe long-term restrictions on the subsidiary's ability to transfer funds.
- 2The activities of the subsidiary are significantly different from those of the rest of the group, making consolidation irrelevant.
- 3The parent company itself is a wholly-owned subsidiary, or a partially-owned subsidiary whose other owners do not object to the non-preparation.✓
- 4The parent company's debt or equity instruments are traded on a public market, and its ultimate parent prepares IFRS-compliant consolidated statements.
Correct answer
The parent company itself is a wholly-owned subsidiary, or a partially-owned subsidiary whose other owners do not object to the non-preparation.
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