Thursday, December 15, 2011

Does the liquidator of a company become the parent company and thus have to consolidate financial statements?

The direct financial or controlling interest through stock ownership is not the only characteristic that requires consolidation of financial statements. Another characteristic is that one company has the direct ability to make decisions about the other company's activities. Since this is the case here, consolidated statements are required. This is for the U.S., but I would think it's the same in Australia.

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