MC Question 9
Consolidated financial statements are presented on the basis that the companies within the group are treated as if they are a single economic entity.
Which of the following are requirements of preparing consolidated financial statements?
| (1) | All subsidiaries must adopt the accounting policies of the parent in their individual financial statements |
|---|---|
| (2) | Subsidiaries with activities which are substantially different to the activities of other members of the group should not be consolidated |
| (3) | All entity financial statements within a group should normally be prepared to the same accounting year end prior to consolidation |
| (4) | Unrealised profits within the group must be eliminated from the consolidated financial statements |
A 1 and 3
B 2 and 4
C 3 and 4
D 1 and 2