ACCA FR · Chapter 13 · Question 10 of 11
Gazelle Co's subsidiary operates in banking, while the rest of the group manufactures furniture. Which statement about consolidating this subsidiary is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) It must be consolidated, because IFRS 10 does not allow subsidiaries to be excluded on the grounds of dissimilar activities
Explanation
Under IFRS 10, all subsidiaries controlled by the parent must be consolidated. Dissimilar activities are not a reason to exclude one. Relevant information is given instead through segment and other disclosures.
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