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      Question

      Which of the following is true regarding consolidated

      financial statements?
      A Parent must consolidate only if it owns >50% voting rights or controls the subsidiary Correct Answer Incorrect Answer
      B Consolidate only if both companies listed Correct Answer Incorrect Answer
      C Consolidation never required for government entities Correct Answer Incorrect Answer
      D Consolidation optional even when control exists Correct Answer Incorrect Answer
      E Parent consolidates only when subsidiary profitable Correct Answer Incorrect Answer

      Solution

      Control, usually via >50% voting rights, requires consolidation per Ind AS 110.

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