Accounting · Consolidated Financial Statements - IFRS 10
Which of the following statements is correct regarding the reporting dates when preparing consolidated financial statements under IFRS?
- 1A subsidiary cannot be consolidated unless it prepares financial statements to the exact same reporting date as the parent.
- 2A subsidiary's financial statements can be consolidated without adjustments if the gap between reporting dates is up to five months.
- 3The difference between the reporting date of the subsidiary and the parent cannot be more than six months.
- 4Where a subsidiary's financial statements are drawn up to a different reporting date, adjustments must be made for significant transactions occurring between the two dates, provided the gap does not exceed three months.✓
Correct answer
Where a subsidiary's financial statements are drawn up to a different reporting date, adjustments must be made for significant transactions occurring between the two dates, provided the gap does not exceed three months.
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