Problem 1. The requirement of consolidated financial statements for parent and subsidiary companies has become a controversial issue in the field of international accounting. U.S. GAAP requires parent and subsidiary companies to report their information on a consolidated basis. However, under IAS 27 Consolidated and Separate Financial Statements, the IASB allows for consolidated and separate (non-consolidated) accounting methods. Consider the impact of these accounting methods on financial statements and their users. Think about whether the IASB should require parent and subsidiary companies to report on a consolidated basis.
With these thoughts in mind I will do an assessment of the impact of consolidated and separate accounting methods on financial statements and their users. How do these two methods compare to each other? Provide your opinion on whether the IASB should require parent and subsidiary companies to report on a consolidated basis. (half page)
Problem 2. The requirement of consolidated financial statements for parent and subsidiary companies has become a controversial issue in the field of international accounting. U.S. GAAP requires parent and subsidiary companies to report their information on a consolidated basis. However, under IAS 27 Consolidated and Separate Financial Statements, the IASB allows for consolidated and separate (non-consolidated) accounting methods. Consider the impact of these accounting methods on financial statements and their users. Think about whether the IASB should require parent and subsidiary companies to report on a consolidated basis. I will complete an assessment of the impact of consolidated and separate accounting methods on financial statements and their users. How do these two methods compare to each other? Provide your opinion on whether the IASB should require parent and subsidiary companies to report on a consolidated basis. Be sure to support your response with references to this week's Learning Resources. (Half page)