Case Study 10: Entities required to prepare consolidated financial statements (AASB10)
In the following independent situations, discuss which entity, if any, may be a parent required to prepare consolidated financial statements under AASB 10/IFRS 10.
1. Jamie Ltd owns 100% of the shares of Pod Ltd, which owns 100% of the shares of Mira Ltd. All companies prepare their own financial reports under AASB/IFRS accounting standards. Although the shares of Pod Ltd are not traded on any public stock exchange, it is in the process of issuing debt instruments in a public market.
2. Runner Ltd owns 80% of the shares of Beep Beep Ltd, which owns 100% of the shares of
Looney Ltd. All companies prepare their own financial reports under AASB/IFRS accounting
standards. Although the shares of Beep Beep Ltd are not traded on any public stock exchange,
its debt instruments are publicly traded.
Students succeed in their courses by connecting and communicating with an expert until they receive help on their questions
Consult our trusted tutors.
Login | Sign Up
