Ind AS Overview & ConsolidationMCQQuestion 5751 of 6
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What is the primary objective of consolidation of financial statements?

Options

ATo present the financial position and performance of the parent company only
BTo present the financial position and performance of the subsidiary company only
CTo present the financial position and performance of the group as a whole
DTo present the financial position and performance of the associate company only
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Correct Answer

✅ Option C — To present the financial position and performance of the group as a whole

All Options:

  • ATo present the financial position and performance of the parent company only
  • BTo present the financial position and performance of the subsidiary company only
  • CTo present the financial position and performance of the group as a whole ✓
  • DTo present the financial position and performance of the associate company only

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Detailed Solution & Explanation

Consolidation of financial statements is the process of combining the financial statements of a parent company and its subsidiary companies into a single set of financial statements. The primary objective of consolidation is to present the financial position and performance of the group as a whole, rather than individual companies.
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More Questions from Ind AS Overview & Consolidation

Which of the following is a key feature of Ind AS?

Which of the following statements is true about Ind AS 110 - Consolidated Financial Statements?

Explain the concept of control in the context of consolidation of financial statements, and provide examples of scenarios where control may exist.

Discuss the key differences between Ind AS and IFRS, and explain the reasons for these differences.

Analyze the provisions of Ind AS 111 - Joint Arrangements, and explain the accounting treatment for joint operations and joint ventures.

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