Corporate Accounting Assignment, OUM, Malaysia Present the financial affairs of a parent company and its legally distinct subsidiaries as if they were a single unified economic entity
University | Open University Malaysia (OUM) |
Subject | Corporate Accounting |
The purpose of consolidated financial statements is to ‘present the financial affairs of a parent company and its legally distinct subsidiaries as if they were a single unified economic entity (Huefner and Largay III, 1990, p. 26).
However, problems persist in relation to consolidated financial reporting such as ‘control when ownership is absent; technical issues of asset valuation; goodwill recognition, and minority interest presentation; and the need for separate reporting in addition to consolidated financial statements (Huefner and Largay III, 1990, p. 38).
The international financial reporting standard that provides guidance on consolidated financial statements is IFRS 10 (the Australian equivalent is AASB 10).
The objective of IFRS 10/AASB 10 Consolidated Financial Statements is to ‘establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities’ (AASB, 2015) There have been positive as well as negative reports on the implementation of IFRS 10/AASB 10.
For example, it leads to an increase in consolidated statements quality (Muller, 2014); the effects of the adoption are associated with financial reporting incentives (Bedford et al., 2022); or that consolidated financial statements do not possess the information content frequently attributed to them in the literature (Walker, 1976).
b. According to an article published by Huefner and Largay III (1990), one of the issues regarding consolidated financial reporting is ‘consolidation policy: the circumstances under which subsidiaries should or should not be consolidated.’ (Huefner and Largay III, 1990, p. 28).
Why do the authors think it is an issue? You must support your answer with published articles and journals.
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
Get expert corporate accounting assignment help from Assignment Helper MY. Your trusted online assignment assistance platform. Boost your grades at Open University Malaysia (OUM) with our tailored solutions and comprehensive support. Our skilled accounting professionals will ensure accurate financial analysis, report preparation, and compliance with relevant regulations. And that's not all – we excel in HMEF5113: Statistics For Educational Research Assignment too. With timely delivery and affordable prices, we guarantee a stress-free academic experience. You also avail of our experts for top Programming Assignment Help.
Recent Solved Questions
- Business Administration Report, UTN, Malaysia Provide a brief discussion on the importance of the external environment and internal analysis of the organizations
- MX3536: Differential Equations Assignment, UTM, Malaysia Concider the heat equation with boundary conditions and initial conditions
- Cyber Forensics & Information Technology Assignment, LBS, Malaysia Describe windows system artifacts, Outline the key artifacts from the windows operating system
- Understanding Ethics and Civilization Report, USM, Malaysia The explanation of location, the community involved, the year and month the issue happened, and the causes
- MOSFET Circuits and Fabrication Assignment, UiTM, Malaysia Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET) is the backbone of modern electronics
- FAR210: The information related to the property, plant and equipment of the company is as follows: Financial Accounting 3 Assignment, UiTM, Malaysia
- A241 SQQSK101 Elementary Statistics Group Assignment
- English for Workplace communication, OUM, Malaysia The increase in mobile phone use has transformed the way we live, communicate and do business
- CSC404: Programming II Assignment, UiTM, Malaysia UiTM Johor will organize an Active Learning Workshop among lecturers from UiTM and other universities in Malaysia
- Fundamentals Of Computer Problem Solving Assignment, UiTM, Malaysia Given a table of prices according to the type of dates. Request the type of dates, grade, and amount