Accounting · Accounting Standards
Which activity is a key consolidation step when preparing consolidated financial statements under Accounting Standard (AS) 21?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Including only the parent company's standalone assets and liabilities in the group statement
- 2Recording the subsidiary's financials using entirely separate, unaligned accounting policies
- 3Ignoring minority interest in the subsidiary's equity during the consolidation process
- 4Eliminating intercompany transactions and balances between the parent and its subsidiary✓
Correct answer
Eliminating intercompany transactions and balances between the parent and its subsidiary
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