Which of the following pertaining to Consolidated Financial Statements is correct?

A) The preparation of Consolidated Financial Statements means that the companies
involved cease to operate as separate legal entities.
B) When one company has control over another, Consolidated Financial Statements
must be prepared for the combined entity.
C) The preparation of Consolidated Financial Statements is at the Parent Company's
discretion.
D) Before preparing Consolidated Financial Statements, a subsidiary's Financial
Statements prior to the date of acquisition must be restated.


B) When one company has control over another, Consolidated Financial Statements
must be prepared for the combined entity.

Business

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Indicate whether the statement is true or false

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