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CMA Final · Corporate Financial Reporting · Consolidated Financial Statements and Separate Financial Statements

Ind AS 110 describes consolidated financial statements as the financial statements of a group presented as those of a single economic entity. Which set of items of the parent and its subsidiaries is presented in this way?

Consolidated financial statements present the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries together, as if they belonged to a single economic entity. Presenting only some of these items would not reflect the full definition in Ind AS 110.

  1. AOnly the assets and liabilities of the parent and subsidiaries
  2. BAssets, liabilities, equity, income, expenses and cash flowsCorrect
  3. COnly the income and expenses of the parent and subsidiaries
  4. DOnly the net assets of the subsidiaries at fair value

Explanation

The defined term in Ind AS 110 states that the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. The options listing only some items are incomplete, so they are wrong.

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